What’s New for 2016 —Tax Law changes every year. We keep track of the tax law changes to help you get your maximum refund and credit. Here are highlight of changes in 2016 for your reference.
Tax return filing begin date and due date: 2017 tax filing season begins Jan 23 for Nation’s taxpayers and tax returns due April 18. The filing deadline to submit 2016 tax returns is Tuesday, April 18, 2017, rather than the traditional April 15 date. In 2017, April 15 falls on a Saturday, and this would usually move the filing deadline to the following Monday — April 17. However, Emancipation Day — a legal holiday in the District of Columbia — will be observed on that Monday, which pushes the nation’s filing deadline to Tuesday, April 18, 2017. Under the tax law, legal holidays in the District of Columbia affect the filing deadline across the nation.
Refunds in 2017 Choosing e-file and direct deposit for refunds remains the fastest and safest way to file an accurate income tax return and receive a refund. However, the IRS does not accept 1040NR and 1040NR-EZ form electronically, so you cannot prepare and efile these forms.
The IRS still anticipates issuing more than nine out of 10 refunds in less than 21 days, but there are some important factors to keep in mind for taxpayers.
Beginning in 2017, a new law requires the IRS to hold refunds on tax returns claiming the Earned Income Tax Credit or the Additional Child Tax Credit until mid-February. Under the change required by Congress in the Protecting Americans from Tax Hikes (PATH) Act, the IRS must hold the entire refund — even the portion not associated with the EITC and ACTC — until at least Feb. 15. This change helps ensure that taxpayers get the refund they are owed by giving the IRS more time to help detect and prevent fraud.
Individual Tax Identification number (ITIN):
IRS is taking vital steps to strengthen and protect the integrity of the process for issuing the individual taxpayer identification number (ITIN). ITINs are used by people who have tax-filing or payment obligations under U.S. law but are not eligible for a Social Security number. Under a recent change in law, any ITIN not used on a tax return at least once in the past three years will expire on Jan. 1, 2017. In addition, any ITIN with middle digits of either 78 or 79 (9NN-78-NNNN or 9NN-79-NNNN) will also expire on that date.Currently, a complete and accurate renewal application can be processed in as little as seven weeks. But this timeframe is expected to expand to as much as 11 weeks during tax season, which runs from mid-January through April..We are Certified Acceptance Agents (CAA) and we are able to help to apply ITIN for you with right documents to IRS.
Affordable Care Act (ACA) Tax Provisions:
The law requires you and your dependents to have health care coverage, an exemption, or make a payment with your return. If you purchased coverage from the Health Insurance Marketplace, you may be eligible for the premium tax credit. See ACA topics later. You may receive one or more forms relating to health care coverage you had last year. New Forms are 1095-A Health Insurance Marketplace Statement, 1095-B Health Coverage, and 1095-C Employer-Provided Health Insurance Offer and Coverage which may affect your individual income tax return. If you are expecting to receive a Form 1095-A, you should wait to file your 2016 income tax return until you receive that form. However, it is not necessary to wait for Forms 1095-B or 1095-C in order to file. (continue…)