04 Feb Top 5 Tax Tips For Individuals
It’s tax return time, friends! Stress less with this quick list to help you get organized for easy and fast tax preparation:
1. Get Organized With A Checklist
It’s important to know which documents, receipts, information, and forms you need before you get started. A successful tax return experience is often one that’s well planned. If you’ve just recently moved over to the US, you need to know all about paying taxes. If you plan on working in America, you’ll probably need to know What is an ITIN. This will help you pay taxes. Most Americans use a Social Security Number (SSN), but some newcomers are unable to apply for an SSN, which is why Individual Taxpayer Identification Numbers (ITINs) are so useful for people who have just relocated over to America. To help you even more, we’ve put together this printable checklist to help you get ready.
2. Be Aware Of Health Care Penalties
On October 1 2013, the US Government signed Obamacare into law, meaning any individual without health insurance, either privately held or through the Government Healthcare Marketplace, is responsible to pay a penalty at tax time.
The price of this penalty is rising – an uninsured household of three or more during the 2015 tax year could face a maximum penalty of $975. The maximum penalty for the 2016 tax year inflates to a whopping $2,085.
Here’s a small silver lining: The Supreme Court did rule in June 2015 that the federal premium tax credit is available to eligible taxpayers, regardless of whether they bought their coverage on the federal exchange or through state marketplaces. This government subsidy is available to eligible insurance exchange policy buyers to help them pay for part of their required coverage.
The bottom line here – get insured.
3. Are you entitled to $1K in cash from the US Government?
The American Opportunity refund can help you with paying for your college education.To receive this, you must meet these criteria:
4. Be Aware Of Deadlines:
2016 is a unique year, so mark your calendars! This brilliant overview from Bankrate explains why this year’s tax deadline is not the standard April 15th:
“The way the days fall in April 2016 means that the usual mid-month tax-filing deadline is a bit later. In 2016, the Washington, D.C., holiday Emancipation Day is celebrated on April 15. Federal law mandates that any holiday in the nation’s capital also applies to offices there, and that pushes the usual due date for annual 1040 filings to Monday, April 18.
Taxpayers in Maine and Massachusetts will get one more day — until April 19 — to file their federal returns because offices there will be closed on the 18th for Patriots’ Day, the holiday in those states that commemorates the first battles in the Revolutionary War.”
5. Use Direct Deposit
The fastest way to get your tax refund is by having it deposited directly into your bank account. Some tax accountants also offer in-office refund check printing or instant debit cards you can walk out with the same day. Learn about Empire’s own “Pay Nothing Today” methods here.