Over the next few weeks, many of us will be keeping an eye out for our W-2s. It all ties into tax refund time. Here's a checklist on what to bring no matter where you go to get your taxes done. If you make under a certain amount each year, head here for free tax help.
To explain what's new this tax season, Newswatch 16 turned to "PA & K Accountants and Consultants" from Kingston. Their certified public accountants joined us on today's morning show from Fidelity Bank. Here are some important deductions and provisions they shared with us to be aware of this tax season.
New for 2015 Tax Extenders Legislation
Individual Taxpayer Provisions
- Extended State and local sales tax deduction
- Extended the American Opportunities Tax Credit for college tuition
- Extended the above the line tuition tax deduction
- Extended the enhanced Child Tax Credit
- Extended the deduction for PMI
- Extended the school teachers $250 expense deduction
- Extended the charitable deduction for distributions from IRA’s directly to charities.
Other New Provisions
- Health insurance penalty for individual that were uninsured increased to $325 per person or 2% of household income whichever is greater.
- The standard mileage for 2015 was 57.5 cents per mile for business miles.
- The standard mileage rate of 2015 was 23 cents per mile for medical related travel.
- The standard mileage rate for charitable travel was 14 cents per mile.
Business Provisions
- Taxpayers can take the Section 179 expense deduction for up to $500,000.
- The 50% bonus depreciation deduction was extended for 5 years.
Miscellaneous items to consider
- Review your withholding allowance with your accountant and make any necessary adjustments using Form W-4.
- Consider the state and local sales tax deduction if you made any large purchases in 2015.
- If eligible, consider making an IRA contribution by April 15, 2016 for 2015.
- Review your 2015 home expenditures for potential items qualifying for the energy credit.
- Business owners consider taking the Section 179 deduction for equipment purchases.
- Business owners consider taking the bonus depreciation deduction.
- Business owners consider making retirement plan contributions for 2015 by the due date of your business tax return.
- Consider increasing you 2016 401K contributions.
- Review your charitable activities and consider the deduction for charitable mileage.