It is that time of the year again. You guessed it, tax season. Although you may have not even received your W-2’s and other tax filing forms, some have already begun filing their 2017 return as the IRS began processing them on Monday, January 23rd. For those early birds who were on top of their finances for 2016 as well anyone else who will be submitting legal documentation for their 2017 taxes, you may want to listen up.
What Tax Changes Are Coming?
As you know, every tax season brings new changes, and even challenges for some. And according to Yahoo News, there are 5 tax changes you need to be aware of.
- Delay in Refund
Well this isn’t a big surprise as it becomes an issue for many taxpayers each and every year. But, what makes this year different is the PATH Act, Protecting Americans from Tax Hikes. This act mandates that the IRS hold onto refunds of those who claim the EITC, Earned Income Tax Credit, or the ACTC, Additional Child Tax Credit. In most cases where a taxpayer files early, they receive their refunds rather quickly. Unfortunately, many people who have already filed may have to wait until the IRS releases these funds on February 15th. That means you could be waiting until the week of February 27th to see any IRS activity on your bank account statement.
- W-2 Verification
Some taxpayers may notice a 16-digit code found on a separate box on their W-2. This is a verification code the IRS is using help reduce identify theft and ensure the returns being filed are legitimate. The IRS stated that even if you make a mistake when entering this information, it shouldn’t negatively impact your refund.
- Standard Deduction
Someone filing as head of household will see a standard deduction amount jump from $50 to $9,300.
- Health Insurance Penalty Increase
If you work with a tax attorney in Kentucky who assists you with your taxes, they may have already provided you with a warning about the increase in health insurance penalties. But, here’s what you can expect in the event you didn’t have health insurance coverage in 2016. The penalty currently stands at 2.5% of total household adjusted gross income or $695 per adult, whichever is higher. Children under 18 will incur you a $347.40 penalty also.
- The Tax Filing Deadline is April 18th
Behind on Your 2015 Taxes?
While many are looking forward to the returns they may be receiving, you may be worried about your 2015 or even 2014 return. If you have an issue with your current filing status and need legal aid to help you get caught up, let USAttorneys.com find you the best tax lawyer in Lexington, KY. The last thing you need is for the IRS to seize money or assets from you because you haven’t paid them. Therefore, consult with a Lexington tax attorney today and see how they can help you get back on track.