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Just after the most wonderful time of the year comes the most frustrating time, when you have to figure out how much you owe Uncle Sam. There are a handful of rule changes this year that may affect your income tax return.
Procrastinators rejoice. The filing deadline for 2015 income tax returns is April 18, 2016. That is because the traditional April 15 deadline falls on the day commemorating Emancipation Day, the anniversary of the abolition of slavery in the the Distict of Columbia. Emmancipation Day is a DC holiday, but the IRS treats these as federal holidays for tax filing purposes. Residents of Maine and Massachusetts get even more time. They have until April 19 to file their federal taxes. April 18 is Patriot's day a statewide holiday in both states. the IRS has previously ruled that state residents get and extra day to file taxes if the federal deadline occurs on a statewide holiday.
Higher Affordable Care Act Penalties. Those without heath insurance will have to pay a bigger penalty this year. The Affordable Care Act (ACA) requires most individuals who do not qualify for exemptions to maintain minimum coverage or pay a penalty. For 2015, the penalty increases to $325 per adult or 2% of net household income, which ever is greater. That is up from $95 per person or 1% of net household income last year
Two new forms Those employed by a big company, defined as at least 50 full time workers will receive a 1095-c form from their employer, The form identifies the employee and employer shows which months the employee was eligible for coverage and shows the cost of the cheapest monthly premium. If the company does not offer insurance to its employees, the 1095-c will indicate that. If you have health insurance through a smaller employer or insure yourself, you will receive a 1095-B form, which offers more details than the 1095-c such as who in your household is covered by the the insurance. The forms will help determine your eligibility for a premium tax credit if your company's health plan costs more than 9.56 percent of your income.
New credit for cross border workers. Some taxpayers who work in one state but live in another may get an extra tax credit this year due to the Supreme Court's ruling n Comptroller of the Treasury v Wynne. The ruling prevents a state from double taxing personal income earned by its residents in another state
NEW TAX RULES
2500 Plaza 5 25th fl Jersey City NJ 07311 phone 732-516-1648 fax 732-516-9778
Daniel Cullinane CPA
25 Plaza 5 25th fl Jersey City NJ phone 732-516-1648 fax 732-516-9778