WINTER 2016 – What’s new in 2016

Congress passed a $680 billion tax extenders bill in mid December which includes six permanent extenders for individual taxpayers. With a nod to George Frederic Handel, we sing “Hallelujah!” They are:

  • Enhanced Child Tax Credit
  • Enhanced American Opportunity Tax Credit
  • Enhanced Earned Income Tax Credit
  • Above-the-line deduction for eligible school teacher expenses, $250, and indexed for inflation
  • Parity for exclusion from income for employer provided mass transit and parking benefits
  • Deduction of state and local general sales taxes (Sch A deduction)

Business mileage rate for 2016 decreases to $.54/mile. Charitable mileage remains the same in 2016 at $.14/mile. Medical mileage for 2016 decreases to $/19/mile.

For the estate of any decedent dying during calendar year 2015, the basic exclusion for estate tax is $5,430,000. Estate tax exclusion for decedents who die in 2016 is $5,450,000.

IMPORTANT DUE DATES:

April 18, 2016

  • Deadline for filing individual tax returns for 2015
  • Deadline for filing a request for extension of an individual tax return for 2015
  • 1st quarter estimated tax payment due
  • Last day to make a 2015 contribution to a Traditional IRA or Roth IRA

June 15, 2016 – 2nd Quarter Estimated Tax payment due

September 15, 2016 – 3rd Quarter Estimated Tax payment due

October 17, 2016 – Deadline for filing an extended 2015 individual tax return

January 15, 2017 – 4th Quarter Estimated Tax payment due

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