5 Important Tax Facts You Should Know for 2016

5 Important Tax Facts You Should Know for 2016

It’s a new year. Therefore, there are new changes to the tax code. Some of those changes are accessory and won’t appulse you at all. However, added changes could affect you dramatically.

Here are 5 important tax facts you should apperceive for 2016.

1. Amends for no Bloom Insurance

Now that the Patient Protection and Affordable Care Act (PPACA) is the law of the land, you’re appropriate to accept bloom insurance. If you don’t, you’ll face a amends that’s absolutely just an added tax.

The costs are complicated. If you’ve absitively not to get bloom insurance, it’s best if you buy tax software that will account the bulk of the amends that you owe. While you’re at it, be abiding to aswell get software that will advice you book DC taxes or taxes for the accompaniment that you reside in.

Keep in mind, though, the PPACA amends is not insignificant. You’ll acceptable owe a lot added in taxes than you would accept otherwise. Consider accepting bloom allowance for next year.

2. Paperwork for Employers

It’s not just individuals who are afflicted by the PPACA. Administration are afflicted as well.

Form 1095-B provides advice about minimum capital advantage to an alone and is binding for employers. Form 1095-C is binding for ample administration (companies with at atomic 50 employees) and abate administration that are associates of a “controlled group” that cover at atomic 50 employees.

3. New Filing Date

Good news: Uncle Sam is giving you a few added canicule to actuate your acreage taxes and book your tax acknowledgment this year. As you apparently know, you commonly accept to book by April 15. However, that’s an official anniversary in the District of Columbia (Emancipation Day). This year, you’ll accept to book by April 18. If you reside in Maine or Massachusetts, you accept an added day acknowledgment to Patriots Day.

4. Filing Deadlines for Businesses and Extenders

Some businesses will see filing borderline changes in 2016. For example, if you accept an S corporation, you accept until the 15th day of third ages afterwards the end of the tax year to book your business taxes. That agency you accept until March 15.

On the added hand, if you accept a C corporation, you accept until the fourth ages afterward the tax year. That agency you accept until April 15.

Also, if you accept to book paperwork accompanying to affiliation income, you now accept a six-month extension. If you accept to book paperwork accompanying to acreage and assurance affairs, you accept a five-and-a-half ages extension. If you accept to book paperwork accompanying to agent account plans, you accept a three-and-a-half ages extension.

5. College Taxes

Unfortunately, you ability accept to pay college taxes as well. Since the American Taxpayer Relief Act of 2012, there’s been a new 39.6 percent tax bracket. If you’re authoritative a few hundred thousand dollars per year, it’s acceptable that you’ll accept to angle over about 40 percent of your assets in taxes.

Almost every year there are changes to the tax code. Be abiding to accumulate up with the changes that affect how you book and pay taxes.