The Beacon: Technical Update

Quick Facts

 

STANDARD MILEAGE RATES:

2016: 54 cents per mile

2015: 57.5 cents per mile

 

HSA CONTRIBUTION LIMITS:

  • 2016 self only: $3,350
  • 2016 family: $6,750
  • 2015 self only: $3,350
  • 2015 family: $6,650
  • HSA holders age 55 or older may save an extra $1,000

(contributions for calendar year 2015 can be made until April 15, 2016)

 

2015 TAX RETURN DEADLINES:

 

Corporations & S Corps are due March 15, 2016 and may be extended to September 15, 2016

 

Partnerships, estates and trusts are due April 18, 2016 and may be extended to September 15, 2016

 

Individuals are due April 18, 2016 and may be extended to October 17, 2016

 

Non-profits are due May 16, 2016 and may be extended to August 15, 2016

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In a changing climate of new laws and emerging economic recovery many factors should be considered when filing 2015 tax returns and making decisions in 2016.

 

Our experienced team is available to provide important financial and tax information to guide you successfully to your desired destination.

 

 

Are you affected by the new Health Care Law?

 

The Affordable Care Act contains tax provisions that affect the 2015 income tax return you file this year. Almost everyone is affected by the individual shared responsibility provision while only people who purchased coverage through the Marketplace are affected by the premium tax credit. The following chart will help you better understand what you need to do on your tax return.

 

                     IF YOU...                           THEN YOU..

And everyone in your tax household had health coverage for the entire year

Will simply report the health coverage on your tax return

Enrolled in health insurance through the Marketplace

Should receive a Form 1095-A, Health Insurance Marketplace Statement from the Marketplace

Received a Form 1095-A, showing you received the benefit of advance payments of the premium tax credit in 2015

Must file a tax return in 2016 and reconcile the advance payments with the amount of the premium tax credit allowed on your tax return

                     IF YOU...                           THEN YOU...

Enrolled in health insurance through the Marketplace but did not receive a Form 1095-A

Should contact the state or federal Marketplace through which you enrolled

Obtained an exemption from the Marketplace, and received your unique Exemption Certificate Number

Will enter the Exemption Certificate Number in Part I of Form 8965, Health Coverage Exemptions, and submit the form with your return

Applied for an exemption from the Marketplace, but do not currently have an Exemption Certificate Number

Will enter 'Pending' in Part I of Form 8965 Health Coverage Exemptions, and submit the form with your return

Are claiming an exemption that can be granted only from the IRS

Will not need an Exemption Certificate Number, but will complete Parts II and III of Form 8965, Health Coverage Exemptions, and submit the form with your return

 

 


What to do if you receive an IRS Notice:

     Each year the IRS sends millions of letters and notices to taxpayers. Although some people may feel anxious when they receive one, don’t panic: there are many reasons the IRS sends notices to taxpayers, and most are easy to resolve. The notice usually covers a specific issue about your account or tax return. It may request payment of taxes, notify you of a change to your account or refund, or simply ask for additional information. If you receive a notice about a correction to your tax return, you should review it carefully. You will usually need to compare the information in the notice to the entries on your tax return. If you agree with the correction, you usually don’t need to reply unless a payment is due.

     If you don’t agree with the correction the IRS has made, it’s important that you respond in writing to explain why you disagree. Include copies of any documents and information you wish the IRS to consider, along with the bottom tear-off portion of the notice. Mail the information to the IRS address shown in the lower left corner of the notice, and allow at least 30 days for a response. Keep copies of any correspondence to or from the IRS with your tax records.


Remember: Your tax preparers at Parks CPA have valuable experience and insight into these matters! We can discuss your options with you and answer any questions you may have. We are here to support you in optimizing your tax strategies.

 
 
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