As 2015 winds down, we thought it would be a good time to mention some interesting tax related issues for 2016:
- The individual mandate penalty increases. The penalty for not having health insurance increases to the higher of 2% of yearly household income or $325 a person per year.
- The Affordable Care Act (ACA) impacts more businesses. Certain large employers who have on average 50 or more full-time equivalent employees in the previous calendar year must offer affordable minimum essential coverage to their full-time employees and their dependents or face an employer shared responsibility payment.
- New ACA related forms to deal with. Forms 1095-B and 1095-C are mandatory for calendar year 2015 and must be filed by any person that provides minimum essential coverage to an individual (1095-B) and by applicable large employers (Form 1095-C) who averaged at least 50 full-time equivalent employees during calendar year 2014.
- Increase in identity theft. Due to the increase in fraudulent tax returns filed under legitimate names and social security numbers, the IRS has agreed to provide identity theft victims with copies of the fraudulent tax returns so they can have a better chance at fixing the problem.
- Congress is waiting until last minute to extend expired credits and deductions again. Things like the Section 179 deduction and the sales tax deduction expired at the end of 2014 and Congress has yet to extend them for 2015.
- Supreme Court ruling on same-sex marriage. All states are now required to recognize all married couples in the same way for state income tax purposes.
- Potential salary threshold for overtime pay. If passed, most salaried workers making less than $50,440 annually would be paid 1.5 times their normal pay for time worked beyond 40 hours starting January 1, 2016.
- New filing deadline for 2016. Due to the observance of Emancipation Day on April 15th, individual tax returns will be due April 18, 2016.
- Supreme Court ruling on the ACA. People in states that didn’t establish their own health insurance exchanges will continue to have access to affordable health care.
- The estate tax unified credit increases. It increases from $5.43 million in 2015 to $5.45 million in 2016 per individual. This means an inheritance is free of federal estate taxes unless it exceeds the stated threshold.
Feel free to read more here –
Thank you for reading our blog, and we hope you have a productive and happy end of 2015!