Tax Changes for the New Year

Did you know that the US federal income tax code is 4 times longer than the complete works of Shakespeare? It's doubtful that any single person could possibly know everything in it, and just to make sure, there are tax changes every year! Here are some changes that may or may not affect you in 2016:

• April 15, 2016 is an official District of Columbia holiday (Emancipation Day)—which means you will have until April 18, 2016 to file your return.
• Many people were shocked at the $95/person penalty for not having health insurance last year. If you do not have coverage for 2015, you will have to pay the higher of either 2% of your income above the filing threshold, or $695 per person ($347.50 per child under 18).
• Some recent changes in Social Security and Medicare benefits may affect you or family members.
• Inflation adjustments have been made to over 40 tax provisions, including personal adjustments. Likewise, tax bracket thresholds have increased for each filing status.
• The standard mileage rate for business miles has increased from 56 cents per mile in 2014 to 57.5 cents for 2015.

Speaking of changes, what changes are going on in your own family? If you have a child who turned 17 in 2014, you will no longer be able to claim the child tax credit for that child. Have you turned 65? That can make significant changes on your tax return too.  

In today’s world the only constant is change, and for 2016, your taxes are no exception.