2016 Year-End Reminders-Planning

Published:

As we draw closer to the end of 2016, we begin planning for the upcoming 2017 tax filing season and the 2017 tax year. As a reminder, the 2017 filing season will be different this year as the filing deadlines for business entities, W-2s, and 1099-MISC have changed.

  • Form W-2s are due to the IRS by January 31st. This due date is for forms filed via paper and electronically. In the past, employers could request an extension of time to file Form W-2 with the IRS. Beginning with the 2017 filing season, there is only one 30-day extension to file and it is no longer automatic. Employers must file Form 8809 and it is advisable that Form 8809 is filed as soon as the employer realizes it can’t file the forms by the January 31st deadline.
  • Form 1099-MISCs, which report non-employee compensation, are also due to the IRS by January 31st. Again, this is for forms filed via paper and electronically.
  • Form 114, Reporting of Foreign Bank and Financial Accounts (FBAR), is now due on April 15th 
  • Partnership tax returns for December year-ends (Form 1065) will be due on March 15th.
  • C Corporation tax returns for December year-ends (Form 1120) will be due on April 15th. There is no change in the filing due date for the S Corporation tax return, for December year-ends, as it is still due on March 15th.

Last week the IRS issued Notice 2016-70, which extends the time for employers and insurers to provide forms 1095-B and 1095-C to individuals. The 2016 forms are now due to individuals by March 2, 2017.

Other reminders for this upcoming filing season

  • If a taxpayer is filing a tax return with a refund that includes the Earned Income Tax Credit or the Additional Child Tax Credit (the refundable credit portion), the IRS will be holding the entire refund until February 15th in order to detect and prevent refund fraud.

Other 2017 inflation adjustments announced by the Social Security Administration (SSA) and IRS (these are just a few listed):

  • The Social Security wage base will be $127,200
  • Standard deduction for single taxpayers $6,350 and married filing joint (MFJ) taxpayers will be $12,700
  • Personal exemption $4,050
  • Itemized deductions start to become limited when adjusted gross income (AGI) reaches $287,650 for single taxpayers and $313,800 for MFJ taxpayers.
  • Penalty for not maintaining health insurance coverage is $695 per adult, or 2.5% of AGI, whichever is greater.
  • Estate lifetime exclusion increases to $5,490,000

If you would like additional information or to discuss the topics mentioned, please contact Marie Jett, CPA at 317-260-4472 or mjett@greenwaltcpas.com.