Tax Season Starts January 23
The IRS has announced that tax season will officially begin on January 23, 2017.
Refunds for Returns with EITC or ACTC Delayed
The PATH Act of 2015 requires the IRS to hold refunds claiming the Earned Income Tax Credit (EITC) and the Additional Child Tax Credit (ACTC) until February 15. The IRS must hold the entire refund — even the portion not associated with the EITC and ACTC — until at least February 15. The IRS cautions that these refunds likely won’t arrive in bank accounts or debit cards until the week of February 27 –- if there are no processing issues with the tax return and the taxpayer chose direct deposit.
Filing Deadline is April 18
The filing deadline to submit 2016 tax returns is Tuesday, April 18, 2017. This date is due to April 15 falling on a Saturday and the following Monday being Emancipation Day, a legal holiday in the District of Columbia.
IRS TAX CHANGES FOR 2016
Every year, you can count on some tax law changes affecting you and your return, and some of them typically aren't known until the very end of the year. Let's take a closer look at the ways your taxes might have changed in 2016 and what you should look out for in doing your tax preparation for the coming filing season.
Some small changes for 2016
Inflation produces adjustments to many tax laws every year. However, inflation levels recently have been extremely low, and that kept inflation-related changes to a minimum. Here are some of the most important changes that affect the millions of taxpayers who will file returns in the coming months:
- The personal exemption rises by $50 to a rate of $4,050 for all taxpayers in 2016, subject to phaseouts at specific income levels. You can deduct this amount from your income, and doing so can help you remain in a lower tax bracket if your earnings teeter on a tax bracket cutoff point.
- Standard deductions are also indexed for inflation. But thanks to a low 2015 national inflation rate, only those who qualify to file as head of household see an increase in 2016. These taxpayers get a $50 bump to $9,300. Other standard deductions have not changed, and include $6,300 for singles and married persons filing separate returns, and $12,600 for married couples filing jointly.