Tax Season Changes For 2016

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

(516) 932-5130 / (866) 932-5130

Although it may feel like you just got through the tax craze for 2014, it is time once again to start preparing your financial statements and documents so that you can file for 2015 on time. But don't move too quickly - there are some important changes you need to know about that are taking effect this year. They are:

1. Since Washington D.C's observance of Emancipation Day is on Friday, April 15th this year, tax day for most taxpayers is April 18, 2016. For New England states that observe Patriot's Day, your tax day is April 19, 2016.
2. If you do not have Affordable Care Act approved health insurance, you will receive a higher penalty this year - $695 per person, $2,085 maximum penalty per household. To avoid this penalty, you must be covered under an accepted health plan.
3. Tax brackets, which are used to govern different groups of people, are expected to rise by about 0.4% for 2016.
4. Up $50 from last year, taxpayers are permitted to take a personal exemption of $4,050 on their tax returns.
5. The educator expense deduction, which was on its way to expiring, will now be a permanent tax break as a result of the new spending bill - teachers can use this to deduct up to approximately $250 for classroom supplies whose cost has not been reimbursed.

But that's not all that's about to be different; to learn more about the changes taking place in 2016, check out this article from CBS Money Watch and this article from The Wall Street Journal.

Since filing taxes is something we will all experience, it's important to be as prepared as possible so that doing so goes smoothly. To check out the resources we have available to help with the management of your taxes, please click here. Then, for more information about our tax planning services and how we can help you during this busy financial season, please give us a call at (516) 932-5130.