February 2016 (#1)

What Do Last-Minute Federal Tax Changes Mean for You?

On Dec. 18, 2015, the President signed a bill that included several tax provisions affecting individuals, families, and business owners.  Some provisions have been extended permanently—meaning that you can confidently include them into your long-term tax planning—while in other cases the deadlines have simply been pushed back.   Among the items affected are the child tax credit, education tax benefits, and the IRA charitable rollover for those 70½ or older. Businesses will be interested in the extension of the Section 179 expensing limit and the Section 41 research and development credit, among others.

These are just a few of the tax benefits covered in the late-year legislation. As always, we can help you make sense of new tax developments. Please contact our office with any questions on the extenders and for advice on the impact they may have on your tax situation. 

Two Important Updates on Health Care Coverage and Taxes

Do you purchase health care coverage through the Health Insurance Marketplace? If you do, you may have taken advantage of the premium tax credit that helps cover your payments. The credit can be used when your tax return is filed or it can be used to lower your monthly health care payments. If you chose the advance credit last year and had a change in circumstances, such as a promotion or a new job, that has raised your income, you may no longer be eligible for some or all of that credit and may be subject to a penalty.

At this time of year, most individuals receive many tax reporting forms that they will use when filing their tax returns. Most of these forms were due to individuals by January 31, so that you have plenty of time to file your tax return by April 15. However, you should be aware that this year the deadline for some forms relating to your health care coverage (Forms 1095-B and 1095-C) has been extended until March 31. You will not be required to amend your return if you receive these forms after you file your tax return, but you should keep them with your other tax return documentation.   

 

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Tax Attorney CPA, CFP®, Melville NY

The Law Offices of Lawrence Israeloff, PLLC

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