IRS Gives Additional Time to File Taxes

Breaking News

WASHINGTON — The Internal Revenue Service announced today that it is providing taxpayers an additional day to file and pay their taxes following system issues that surfaced early on the April 17 tax deadline. Individuals and businesses with a filing or payment due date of April 17 will now have until midnight on Wednesday, April 18. Taxpayers do not need to do anything to receive this extra time.

The IRS encountered system issues Tuesday morning. Throughout the system outage, taxpayers were still able to file their tax returns electronically through their software providers and Free File. Taxpayers using paper to file and pay their taxes at the deadline were not affected by the system issue.

“This is the busiest tax day of the year, and the IRS apologizes for the inconvenience this system issue caused for taxpayers,” said Acting IRS Commissioner David Kautter. “The IRS appreciates everyone’s patience during this period. The extra time will help taxpayers affected by this situation.”

The IRS advised taxpayers to continue to file their taxes as normal Tuesday evening – whether electronically or on paper. Automatic six-month extensions are available to taxpayers who need additional time to file can visit https://www.irs.gov/forms-pubs/extension-of-time-to-file-your-tax-return.

Tax Deadline

 

Filing Season for 2017 Taxes

IRS Seal

Important 2017 Filing Season Dates:

January 29, 2018
Today, IRS announced that the filing season will begin on January 29, 2018. The IRS scheduled the opening of the filing season to start on this date to ensure the security and readiness of key tax processing systems before the opening, and to give the agency time to properly assess the potential impact of tax legislation on 2017 tax returns.

April 17, 2018
In addition to IRS announcing that the filing deadline will be April 17, IRS reminded taxpayers that should they claim the Earned Income Tax Credit (EITC) and the Additional Child Tax Credit (ACTC), that refunds will be unavailable before mid-February.

February 27, 2018
IRS expects EITC/ACTC refunds to be available in taxpayers’ bank accounts or through debit cards by February 27, 2018 if the taxpayer chose direct deposit and there are no other issues with the filed return.

Holiday Timing
The IRS further reminded taxpayers that many financial institutions do not process payments on weekends or holidays. Therefore, the three-day holiday weekend involving President’s Day may affect the refund timing for EITC and ACTC filers.

Tax Deadline October 17, 2016

Tax Deadline

The tax filing deadline for individual income tax returns is October 17, 2016.

tax-deadline-oct-17-2016

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IRS to Delay Tax Refunds in 2017

Tax RefundThe IRS has informed tax professionals of a new law that will be in force in 2017 for the filing season for 2016 tax returns. The new law will require the IRS to hold all tax returns that include refunds including Earned Income Tax Credit and Additional Child Tax Credits, until February 15th. This law will be used as a safeguard against identity theft and tax fraud. Those taxpayers that normally file early to get their refund early, will have their refund delayed by the IRS. The IRS will begin issuing the early filing refunds on February 15th. The additional time to process the refunds will assist the IRS in detecting identity theft and potentially preventing tax fraud.

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Healthcare Coverage Reporting Due Dates Extended

Affordable Care ActThe IRS announced the due date for providing Form 1095-B, Health Coverage and Form 1095-C, Employer Provided Health Insurance Offer and Coverage, is extended from February 1, 2016 to March 31, 2016.

Also, announced is the due date for filing the 2015 Form 1094-B, Transmittal of Health Coverage Information Returns, for Form 1095-B Health Coverage, and Form 1094-C, Transmittal of Employer-Provided Health Insurance Offer and Coverage Information Returns for Form 1095-C, Employer-Provided Health Insurance Offer and Coverage, from February 29, 2016 to May 31, 2016 if not filed electronically.

Since Form 1095-C generally includes information about health care coverage and is used to determine eligibility for the premium tax credit, the delayed due dates for reporting may affect the timing of your reporting for health care credits. Some employees (and related individuals) who enrolled in coverage through the Marketplace, but did not receive a determination from the Marketplace that the offer of employer-sponsored coverage was not affordable, could be affected if they do not receive their forms 1095-C prior to filing their tax returns. As a result, for the tax year 2015 only, taxpayers who rely upon other information received from employers, about their offers of coverage for purposes of determining eligibility for the premium tax credit when filing their income tax returns, need not amend their returns once they receive their forms 1095-C or any corrected forms 1095-C.

Individual taxpayers who use form 1095-B or form 1095-C to confirm that they had minimum essential coverage for purposes may not have this information before tax time. For the 2015 tax year only, taxpayers who rely upon other information received from coverage providers about their coverage will not need to amend their tax returns after receipt of the form 1095-B or form 1095-C or any corrections.

2016 Tax Season Start Date

irs with 1040The IRS announced the 2016 tax filing season start date will be Tuesday, January 19, 2016. Paper filed and electronically filed returns will be accepted by the IRS on Tuesday, January 19, 2016.

Let the fun begin!

10 Tax Changes for 2016

taxes made from money2016 is right around the corner and brings tax changes for you to know. Understanding the tax changes will enable you to properly plan and help you to maximize your tax savings.

  1. Tax Filing Day is April 18, 2016. If you are a resident of a New England state that celebrates Patriots Day, your tax filing deadline is April 19, 2016.
  2. Tax Penalties for Obamacare increase. The ACA penalty for not having qualified healthcare coverage rises to $285 per adult, or 2% of income above the filing limit in 2015. For 2016, penalties will rise again, hitting $695 per adult, or 2.5% of income.
  3. Tax Brackets Increase. Tax brackets are adjusted for inflation at about 0.4%.
  4. Standard Deduction for Head of Household Filers Rise. For those who qualify as heads of household, the standard deduction will rise $50 to $9,300 in 2016.
  5. Personal Exemptions Rise. The personal exemption for 2016 will be $4,050, which is an increase of $50.
  6. Health Savings Account Contribution Limits Increase. For 2016, the contribution limit for individual policies will remain at $3,350, but the maximum contribution for family policies will rise by $100 to $6,750. A catch-up contribution of $1,000 for those 55 or older will continue to apply.
  7. Earned Income Credit Rises. For those with three or more qualifying children, the maximum credit will rise to $6,269, up $27. Those with two children will get a maximum $5,572, which is up $24 from 2015, while one-child families can get up to $3,373, $14 more than last year. Those without children get just a $3 bump and can claim up to $506 for 2016.
  8. AMT Exemption is Higher. Single taxpayers will see their AMT exemptions go up $300 in 2016 to $53,900, while joint filers will see a $500 boost to $83,800.
  9. Estate Tax Exemption Increases. The exemption amount will rise to $5.45 million, up $20,000 from 2015. The limit applies to estates of those who pass away in 2016.
  10. Other Tax Provisions Pending Renewal. Again, lawmakers wait until the last minute to renew popular tax breaks, such as charitable distribution from IRAs, state sales tax deductions, teachers’ write-offs for classroom supplies, and deductions for private mortgage insurance. As of early December, these provisions hadn’t yet been renewed for 2015, but typically, lawmakers renew them retroactive to the beginning of the year. The same is likely in 2016 unless an extension provides for two years of relief rather than just one.

Read more at 10 Biggest Income Tax Changes to Plan for in 2016 by USA Today

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