Tax Changes for 2017

It’s a new year, and with it come new changes to our favorite tax code. So what changes can we expect in 2017? Well, the IRS announced the standard annual inflation adjustments back in October, but there are still a few changes that some people may not be aware of.

Early Filers with EITC and/or Additional Child Tax Credit. Many of the fraudulent tax returns that the IRS receives involve refunds with Earned Income Tax Credit and/or the Additional Child Tax Credit. In an effort to limit the lost revenue from tax identity theft and fraudulent claims, refunds with these credits will not be issued until after February 15th.

Health Insurance. Prior to this year, proof of health insurance coverage forms didn't have any filing deadlines. 2017 will change that. The 1095A from employers should be filed by January 31st, just like the W-2s. Other healthcare forms like the 1095B and C are due by February 28th via mail or electronically by March 31. For those who do not have health insurance, the penalty will be the greater of 2.5% of your total household adjusted gross income, or $695 per adult and $347.50 per child, up to a maximum of $2,085.

Taxes and FAFSA. While not necessarily reflecting any change on your tax return, the 2017-2018 Free Application for Federal Student Aid will be requesting tax return information from the 2015 tax year rather than the most recent year. This should certainly ease the anxiety some students feel when trying to encourage their parents to file by the FAFSA deadline!

If you’re interested in some more detailed information, you can subscribe to the IRS's tax tips emails.

Happy tax-filing!