Increased ACA Tax Penalties, New Filing Deadlines, & Income Threshold Changes
Chicago, IL -- (ReleaseWire) -- 01/20/2016 --Ring in the New Year with cheer and some changes from the IRS and Congress when it comes to tax changes for your 2016 tax return. There are changes that affect penalties, deadlines and thresholds. The cost for having no health insurance coverage has tripled since 2014 under the Affordable Care Act (ACA). If you didn't have health insurance, you'll have to pay the higher of these two. Two percent of your annual income above the tax-filing threshold for average premiums of health coverage plans from the federal healthcare exchange or $695 per person and $347.50 per uninsured children under the age of 18.
In addition to increased tax penalties under the ACA, there are also new changes to employer-required coverage. Form 1095-C is now mandatory for employers. Both large and small companies with 50 full-time employees must file Form 1095-C. That means more paperwork for businesses.
This year, taxpayers will have a few extra days to file with the IRS. April 15, 2016 is the official holiday of Emancipation Day. As a result, people will have until April 18, 2016 to file 2015 tax returns. And those in Massachusetts and Maine get one more day for Patriots Day. Those states get until April 19, 2016 to file with the IRS.
There are also new filing deadlines for businesses and individuals filing for extensions, including S corporations and partnerships. Except for C corporations, these entities must file tax returns by the 15th day of the third month after the end of the tax year. Taxpayers who are unable to file on time have new extension options for paperwork related to partnership income. Form 5500 includes a new 3 ½ extension, Form 1041 now has a 5 ½ extension and Form 1065 has a 6 month extension.
Every year, the figures change for income thresholds in the tax code. It is projected that that the following levels will be taxed at a rate of 39.6 percent- married filing joint returns of $466,950, unmarried individuals with income of $415,050, married filing separately with $233,475 and head of household with $441,000 in income.
Knowing all of these tax changes can help you plan and avoid problems with the IRS.
About Ansari Tax Law LLC
Ansari Tax Law LLC is a Chicago business tax lawyer helping people with payroll taxes, business expenses, IRS audits, wage garnishments, and more. Call Ansari Tax Law today for media opportunities or to schedule a consultation with your business taxes, tax litigation, or other tax law issues. We've been helping small businesses, corporations, and everyday people just like you with their taxes for over two decades.