This 2017 Tax Season starts today – January 23rd. What are some changes that you need to be aware of?

Alright – so tax season is here, and as it is with every year, there are some new changes. Nothing to stress about – but here are some of the changes you may need to be “in the know” about:

ONE: Higher floor beneath medical expenses for seniors 

The floor beneath the itemized tax deduction for medical expenses of taxpayers who are aged 65 and up increases 7.5 percent of AGI to 10 percent of AGI. 

TWO: Some taxpayers may need new ITINs

Those who have tax filing obligation but may not be issued a Social Security number will be issued an individual taxpayer identification number (ITIN) by the IRS. Those who have not utilized their issued ITIN in the last 3 years will no longer be able to use it. Only those who need to file taxes in 2017 will need to renew their ITIN. 

THREE: Accelerated due dates for certain tax forms, including W-2s

Due to the 2015 PATH act, Forms W-2, W-3, and other forms that report non-employee compensation must be filed on or before January 31st. There is not an extended filing date for electronically filed returns, but they can electronically filed if they are on time.  

FOUR: Qualified small employers HRA exempt from ACA market reform requirements

The 21st Century Cures Act provides that a “qualified small employer HRA” is not treated as a group health plan for income tax purposes, with exceptions to certain codes and ERISA purposes. Because of this, certain qualified small employer HRA will not face the Code Sec. 4980D excise tax levied on group health plans that don’t meet the ACA market reform requirements. 

FIVE: Information reporting by brokers

Every person doing business as a broker must make a return showing the name and address of each customer, with details including the gross proceeds. 

SIX: Health care penalty increase

The yearly fee for not having insurance in 2016 is $695 for each adult and $347.50 per child (up to $2,085 for a family), or it’s 2.5% of your household income above the tax return filing threshold for your filing status – whichever is greater.

If you have any questions about these changes or feel some pertain to you as a taxpayer, please feel free to contact us