Tax Tips Newsletter
Serving you since 1993
March 2016 - Vol 11, Issue 3
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Greetings!
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We are in the thick of taxes! If you got your tax information in to me by, or on March 10, we will complete your taxes on time. As you know in past seasons we always try to complete everyone so if you haven't sent me your info please do that right away.

As you'll read in the second article below the filing deadline has been moved to April 18th due to a holiday in DC. We are planning to be done on the 15th - the office will be closed the weekend of April 16th & 17th. We will be back in the office on Monday, April 18th to tie up some loose ends.

Again, if you are only missing K1's or brokerage statements, please get us your other information so if we have the time we will try to get you done.

If you are planning to go on extension please get us your withholding information.

As always, your referrals are greatly appreciated.

1040 with pen and calculator
How will the Affordable Care Act affect your 2015 federal income tax return? Here are four items to consider.

* Premium tax credit. If you bought your health insurance policy on the healthcare.gov website, you may have received a tax credit. You could receive the credit in advance during the year as a reduction in your health insurance premium or claim it on your tax return. Either way, you need to file a tax return using the information on Form 1095-A, Health Insurance Marketplace Statement.

* New information forms. This year, you may have received new-to-2015 forms from your insurance company or other health insurance provider, or from your employer. Forms 1095-B and 1095-C provide information about your health policy. You don't need to attach either of these forms to your federal income tax return and you can file before you receive them.

* Penalties. If you did not have health insurance during 2015, you'll owe a penalty unless you qualify for an exception. For 2015, the penalty is the greater of $325 per adult ($162.50 per child), up to a maximum of $975 for families, or 2% of your yearly household income above the filing threshold (capped at the price of a Bronze plan).

Do you have questions about how to report your health insurance coverage? Contact me with any questions.
1040 with broken pencil
This year, you have until April 18, 2016, to file your 2015 individual federal income tax return and pay any balance due. If you live in Maine or Massachusetts, you have until Tuesday, April 19, to file and pay.

Here's why. The normal due date - Friday, April 15 - is Emancipation Day. That's a holiday in the District of Columbia, so the tax filing deadline shifts to Monday, April 18. However, Monday, April 18, is also a holiday (Patriots' Day) in Maine and Massachusetts. That means if you live in either of those states, your deadline moves to April 19. The extended due dates apply whether you file electronically or on paper.
Please note that we are doing everything possible to be finished by April 15th. The office will be closed on April16 and 17. We will be open on April 18.

In addition to income tax returns, the extended due dates affect:

* Requests for the automatic six-month extension that gives you until October 17, 2016, to file your 2015 tax return.

* Tax year 2015 balance due payments.

* Individual estimated tax payments for the first quarter of 2016.

* 2015 contributions to a Roth or traditional IRA.

Does the extension mean you should wait to file? Generally, no. While having additional time to prepare your taxes may seem like a relief, waiting until the last moment can delay your refund or cause you to make mistakes. If you have all your information, schedule an appointment to have us complete your return. Then you can spend those extra days relaxing.
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Tax Tip of the Week: Have you noticed that amongst all the tax forms and statements that you've been receiving for your 2015 taxes, there is now a form 1095 for healthcare. Read this article for more info on these forms.

Business Tip of the Month: As a business owner you may, or may not, want to hire family members! This article gives some good tips about having family members working for you and if, or when, you may need to terminate them.

Financial Tip of the Month: Are you planning to take a vacation soon? Here are some great planning trips to keep your costs within a budget and not skimp on having a fun time.

Fraud Alert: When we answer the phone there are sources that we don't want to hear from, the IRS and the court for jury duty! In reality, neither of those sources would be calling from out of the blue! The fraudsters know that we will react out of fear when the IRS or jury duty is mentioned so they are using the fear to defraud people out of their money. Read this article to be aware of how these scams work.
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Let me know if I can help you with any Quickbooks problems.

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Sincerely,
Linda Heineman
Linda L. Heineman, CPA

phone: 626-577-0979