2015/2016 Updates

ITEMS NEEDED TO COMPLETE YOUR 2015 TAX RETURN

DIRECT DEPOSIT IS THE FASTEST WAY TO RECEIVE YOUR REFUND. IF YOU HAD DIRECT DEPOSIT LAST YEAR PLEASE VERIFY THE INFORMATION LISTED IN YOUR ORGANIZER.
•PLEASE VERIFY THE BIRTH DATES LISTED IN YOUR ORGANIZER.
•PLEASE PROVIDE US WITH FORM 1099 HC. THIS CONTAINS THE HEALTH INSURANCE INFORMATION WE NEED TO PROCESS YOUR MASSACHUSETTS INCOME TAX RETURN.
•CHILD CARE DEDUCTION? PLEASE PROVIDE THE PROVIDERS NAME, ADDRESS AND TAX ID NUMBER.
•MILEAGE CAN BE CLAIMED FOR THE BUSINESS USE OF YOUR VEHICLE INCLUDING, CHARITABLE WORK AND TRAVEL FOR MEDICAL INCLUDING PARKING AND TOLLS.
•MEDICAL DEDUCTIONS, WE ONLY NEED THE TOTALS FOR PRESCRIPTIONS, DOCTORS, DENTISTS, EYEGLASSES ETC. YOU DO NOT NEED TO BRING IN YOUR RECEIPTS AND CANCELLED CHECKS.
•EXCISE TAX- YOU CAN CLAIM A DEDUCTION FOR YOUR EXCISE TAX IF YOU ITEMIZE YOUR DEDUCTIONS.

 


Mileage Deduction

The IRS has released the 2016 standard mileage rates for taxpayers to use in computing the deductible costs of operating an automobile for business, charitable, medical, or moving expense purposes.

*The following reflects the new 2016 standard mileage rates:

  • Business rate per mile- $0.54
  • Medical and moving rate per mile- $0.19
  • Charitable rate per mile- $0.14

For those who deduct mileage on their taxes we found the following link to be very useful:

Everything You Need to Know About Deducting Mileage on Your Taxes


New W-2 Verification Code

For filing season 2016, the IRS will test a capability to verity the authenticity of Form W-2 data. This test is one in a series of steps to combat tax-related identity theft and refund fraud.

The objective is to verify Form W-2 data submitted by taxpayers on e-filed individual tax returns. The IRS has partnered with certain Payroll Service Providers to include a 16-digit code and a new Verification Code field on a limited number of Form W-2 copies provided to employees.

For the purpose of the test, omitted and incorrect W-2 Verification Codes will not delay the processing of a tax return. The IRS will analyse this pilot data in a “test-and-learn” review to see if it is useful in evaluation the integrity of W-2 information.


2016 Inflation Adjusted Amounts

For an IRA contributor who is not covered by a workplace retirement plan and is married to someone who is covered, the deduction is phased out if the couple’s income 2016 is between $184,000 and $194,000, up from $183,000 and $193,000 in 2015.

The AGI phaseout range for taxpayers making contributions to a Roth IRA is $184,000 to $194,000 for married couples filing jointly in 2016, up from $ 183,000 and $193,000 in 2015. For singles and heads of household, the income phaseout range for 2016 is $117,000 to $132,000 up from $116,000 to $131,000 for 2015.

The AGI limit for saver’s credit (also known as the Retirement Savings Contribution Credit) for low and moderate-income workers is $61,000 in 2015; $46,125 for hears of household in 2016, up from $45,750 in 2015; and $30,750 for married individual filing separately and for singles in 2016, up from $30,500 in 2015.

 

The highlights of limitations that remain unchanged from 2015 include the following:

-The elective deferral (contribution) limit for employees who participate in 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan remains unchanged at $18,000.

-The catch-up contribution limit for employees ages 50 and over who participate in 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan remains unchanged at $6,000.

-The limit on annual contributions to an individual retirement arrangement (IRA) remains unchanged at $5,500. The additional catch-up contribution limit for individuals aged 50 and over is not subject to an annual cost-of living adjustment and remains $1,000.


FEE SCHEDULE FOR 2015  INCOME TAX RETURNS(drop off):

E Filing of federal and state return is included in fees listed below.

Form 1040A without Child Care or Earned Income Credit:    $140.00

Form 1040A with Childcare or Earned Income Credit:           $165.00

Form 1040 preparation will be billed at an hourly rate of        $160.00

Preparation of children’s tax returns is a minimum fee of       $ 25.00 per child

Please note appointments start at a minimum fee of $165.00 per hour.


Tax Resources:

Internal Revenue Service  

http://www.irs.gov/

Massachusetts Department Of Revenue 

 http://www.mass.gov/

 U.S. Social Security Administration

http://www.ssa.gov/SSA_Home.html

Mortgage Calculator

http://www.bankrate.com/

  Financial Aid

 http://www.mefa.org/loans/?gclid=CNe0nZv2hq0CFQXd4Aodaxcflg

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