Personal Tax Filing and What’s New in 2018


It’s tax time again, and whether you pay for tax practice or do-it-yourself, making plans in advance calls for up to date information on not unusual filing necessities.

Employers must have W-2 Wage & Income statements inside the mail by using January 31, 2016. You nonetheless have plenty of time to accumulate documents, tally statistics, and to prepare files earlier than beginning your 2015 tax return.Image result for Personal Tax Filing and What's New in 2016

Due Date of Return

The due date for the U.S. Individual Income Tax Return for Tax Year 2015 is April 18, 2016.

Bitcoin

The U.S. Authorities will deal with Bitcoin as assets for tax purposes while making use of rules it uses to control stocks and barter transactions.

Personal Exemptions

The amount a taxpayer can deduct for every exemption multiplied to $4,000 for 2015.

For 2015, the more general deduction for taxpayers who are 65 and older or blind is:

Single or Head of Household – $1,550
Married taxpayers – $1,250 (increase of $50)
Standard Deduction

The general deduction for taxpayers who do not itemize deductions on Form 1040, Schedule A has expanded. The popular deduction quantities for 2015 are:

Married Filing Jointly or Qualifying Widow(er) – $12,600 (boom of $two hundred)
Head of Household – $nine,250 (an increase of $150)
Single or Married Filing Separately – $6, three hundred (growth of $100)
Standard Mileage

For 2015, the following quotes are in effect:

fifty-seven. Five cents per mile for commercial enterprise miles driven
23 cents according to mile driven for clinical or transferring functions
14 cents consistent with mile pushed in the provider of charitable companies
Eligible Long-Term Care Premium Limits

For 2015, the most important quantity of certified lengthy-term care charges eligible as clinical costs has increased. Qualified lengthy-time period care premiums, as much as the quantities are shown below, are taken into consideration scientific expenses on Form 1040, Schedule A, Itemized Deductions:

$380 – age 40 or underneath
$710 – age 41 to 50
$1,430 – age fifty-one to 60
$3,800 – age sixty-one to 70
$4,750 – age 71 and over
Health Savings Account (HSA) Deduction

The annual contribution limits on deductions for HSAs has elevated in 2015 to $three,350 for self-only insurance and $6,650 for a circle of relatives coverage.

IRAs and Other Retirement Plan Modified Adjusted Gross Income (AGI) Limit

For 2015, the maximum IRA deduction will stay at $five,500 ($6,500 if age 50 or older). For a taxpayer included with the aid of a retirement plan at work, the deduction for contributions to a conventional IRA reduces (stages out) if the modified AGI is:

More than $ ninety-eight,000 but less than $118,000 for Married Filing Jointly taxpayers or Qualifying Widow(er) if both spouses have a by using a retirement plan
More than $ sixty-one,000 but much less than $71,000 for a Single or Head of Household or
Less than $10,000 for Married Filing Separately
For an IRA contributor who is not covered with the aid of a place of business retirement plan and is married to a protected individual, there is no deduction if the couple’s profits are between $183,000 and $193,000.

The AGI phase-out variety for taxpayers making contributions to a Roth IRA is:

$183,000 to $193,000 for married couples filing at the same time
$116,000 to $131,000 for singles and heads of household
$zero to $10,000 for a married character filing a separate go back
Retirement Savings Contribution Credit Income Limits Increased

In order to assert this credit score, your MAGI can’t be greater than $30,500 ($ sixty-one,000 if Married Filing Jointly; $ forty-five,750 if Head of Household).

Education Benefits

American possibility credit is decreased for taxpayers with changed adjusted gross income in extra of $eighty,000 ($one hundred sixty,000 for a joint go back).

Lifetime getting to know credit score reduces for taxpayers with modified adjusted gross profits in extra of $55,000 ($110,000) for a joint go back.

Student loan hobby deduction starts to section out for taxpayers with changed adjusted gross earnings in excess of $65,000 ($one hundred thirty,000 for joint returns) and is absolutely phased out for taxpayers with MAGI of $80,000 or greater ($one hundred sixty,000 or more for joint returns).

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