Happy 2016! We mean that literally.
As tax season rolls around, the IRS has issued a few announcements that should make you very happy indeed.
But it’s also Sad 2016.
Some of the other changes will probably not make you nearly so joyful.
Oh, well. You have to take the bad with the good.
Change #1: You have three extra days to file.
No, really, we mean it! This year April 15th falls on a Friday, Emancipation Day, which is observed as a federal holiday. Since the IRS cannot legally require that tax day occur on a holiday weekend, they’ve rolled the deadline over till Monday the 18th.
How’s that for some good news?
You have three more days to file! Make the most of them.
Change #2: Mileage deductions will now be lower.
This isn’t such good news. The official standard mileage rates for 2016 have dropped 3.5 cents per mile for business and 4 cents per mile for moving and medical trips. The rate for charitable trips, however, remained exactly the same as in 2015.
- Business: 54 cents per mile
- Medical or moving: 19 cents per mile
- Charitable: 14 cents per mile
These rates apply to all miles driven starting on January 1, 2016. They’re applicable for cars, vans, pickup and panel trucks.
Considering how low the price of gas has dipped, it really shouldn’t come as a shock that mileage rates have been lowered, too.
We’ll have to see what happens next year.
Change #3: If you don’t have health insurance, you’ll have to pay a higher penalty.
Another not-so-pleasant change.
If you aren’t enrolled in a healthcare plan in the first two months of 2016, you’ll be assessed a tax penalty that costs the same as the Bronze plan under the Affordable Care Act. That’s a penalty of $325/adult and $162.50/child, or 2% of your taxable income – whichever comes first. (So really, why not just get the insurance? You can do that here.)
Stay tuned for more changes and updates as tax day (that’s APRIL 18th) gets closer!
If you have any questions about preparing your taxes, give us a call at 844-841-9857, or schedule a free consultation here.
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