Tax deadlines loom

March 17, 2017/in Tax Briefs/by Raffensperger Martin Finkenbiner RMF

March 31 is the deadline for employers, businesses and others to file certain information returns with the IRS electronically. Forms with a March 31 deadline include W-2G (Certain Gambling Winnings), 1096 (Annual Summary and Transmittal of U.S. Information Returns), 1098 (Mortgage Interest Statement), 1098-T (Tuition Statement), 1099 (except 1099-MISC for nonemployee compensation), 3921 (Exercise of an Incentive Stock Option Under Section 422(b)), and 8027 (Employer’s Annual Information Return of Tip Income and Allocated Tips)

A March madness score that doesn’t involve college basketball.

March 14, 2017/in Tax Briefs/by Raffensperger Martin Finkenbiner RMF

This week, the Congressional Budget Office (CBO) is expected to “score” the proposed bill that U.S. House representatives have released to replace the Affordable Care Act. The CBO score will calculate the cost of the American Health Care Act, as well as how many Americans would lose health coverage under it. According to its website, each year the CBO “provides the Congress with several hundred formal cost estimates that analyze the likely effects of proposed legislation on the federal budget.”

IRS releases preliminary 2015 tax data

March 11, 2017/in Tax Briefs/by Raffensperger Martin Finkenbiner RMF

According to IRS data for the 2015 tax year, taxpayers’ income increased compared with the 2014 tax year. The numbers show increases in many income items, including salary, wages, business income and dividends, no doubt reflecting an improving economic environment. The data also shows increased payments to Health Savings Accounts, a significant drop in the penalty for early retirement plan withdrawals and dramatic increases in Affordable Care Act-related penalties and surtaxes.

What to Do Before the Tax Year Ends Dec. 31

December 15, 2016/in RMF News/by Julie Keyser

Charitable contributions on your tax return:

Donations charged to a credit card before the end of 2016 count for the 2016 tax year, even if the bill isn’t paid until 2017. Checks to a charity count for 2016 as long as they are mailed by the last day of the year. All charitable donations are deductible in the year they are made.

If you are over age 70 ½ this needs to be done for your tax return:

Generally required to receive payments from their individual retirement accounts and workplace retirement plans by the end of 2016, though a special rule allows those who reached 70 ½ in 2016 to wait until April 1, 2017 to receive them. Most workplace retirement account contributions should be made by the end of the year, but taxpayers can make 2016 IRA contributions until April 18, 2017. For 2016, the limit for a 401(k) is $18,000. For traditional and Roth IRAs, the limit is $6,500 if age 50 or older and up to $15,500 for a Simple IRA for age 50 or older.

If you have moved in 2016, before you file your tax return you should do the following:

Contact US Postal Service, employers and the IRS. To notify the IRS, mail IRS Form 8822, Change of Address, to the address listed on the form’s instructions. For taxpayers who purchase health insurance through the Health Insurance Marketplace, they should also notify the Marketplace when they move out of the area covered by their current Marketplace plan.

If your name changed due to marriage or divorce take care of the following to avoid issues on your tax return:

Notify the Social Security Administration (SSA) so the new name will match IRS and SSA records. Also notify the SSA if a dependent’s name changed. A mismatch between the name shown on your tax return and the SSA records can cause problems in the processing of your return and may even delay your refund.

Retain copies of your tax returns:

Beginning in 2017, taxpayers using a software product for the first time may need their Adjusted Gross Income amount from a prior tax return to verify their identity.

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