February 25, 2016

Income Taxes

What’s New for 2016 Income Tax Year

  • IRS is not releasing refunds before February 15, when your tax return includes EIC Child Tax Credit or Education Credits.
  • Advance Refunds – With the IRS delay of some refunds, the availability of an advance on your projected refund may be appealing.  This option allows you to apply for a $500, $800 or $1200 advance on your 2016 Income Tax refund at NO COST to you.  The advance can be received within hours of the IRS accepting your electronically filed tax return.
  • IRS now requires residency verification for all dependents if you qualify for Earned Income Tax Credit, Child Tax Credit or an Education Credit.  This means we will need a document with the name and your address for each of your dependents, dated in 2016, to verify that the dependent lived with you during this tax year.  Examples of these forms might include:  medical records, school records, statement of church givings, social service records, daycare statement and Medicaid records.
  • IRS will begin accepting electronic and paper filed tax returns on January 23, 2017.  However, we will begin preparing returns as early as January 16, 2017. These returns will be prepared ahead and e-filed the moment the IRS opens the door.  This allows you to be first in line to receive your refund.  If you think you will owe the IRS, you can still have your taxes done before the rush and wait to pay your balance due  April 18, 2017.
  • The Affordable Care Act (Obamacare) will continue to affect every 2016 individual tax return.  Every tax payer that has medical insurance coverage will receive a form 1095A, 1095B or 1095C.  We have trained extensively to help you navigate this complicated Health Care law.  If you received your health insurance from healthcare.gov (Obamacare), the Form 1095-A will be required to prepare your income tax return.  However, Forms 1095-B and 1095-C are not required.  You will still need to provide proof of medical insurance coverage and dates covered for each dependent claimed on your return.
  • In addition to identity theft, there are many IRS scams out there.  IRS will NEVER contact you by phone or email.  They will not call you and send the sheriff in 45 minutes to arrest you.  These are examples of scams.  You can find the most recent tax scams listed at www.irs.gov.  However, if you receive a letter from the IRS, please bring a copy of the letter to us for verification and review.
  • Kansas has changed the grace period for penalties.  If you receive a letter from the state of Kansas, you must respond within 20 days to prevent additional daily penalties.
  • Qualified Education Credit expenses now include ONLY tuition paid and books purchased from the higher education institution.  Laptops are NOT eligible expenses (unless required by the college).  FAFSA worksheets will be available with your completed taxes, upon request.
  • Click this link to view our annual calendar letter/tax update for more information.  2016 Calendar Letter
  • Click this link for a helpful checklist of items necessary to prepare your return. 2016 Personal Checklist

Preparation

  • We specialize in the year-round preparation of individual, partnership, LLC, corporation, estate and trust tax returns.
  • Most tax returns are completed during your scheduled appointment time. Although appointments are preferred, we welcome walk-in’s.  Additionally, we offer drop-off, email or mail-in services, whereby most returns are completed within one week.  We offer, for your convenience, online  pre-appointment forms.  This gives you the ability to fill them out ahead of time, in the comfort of your home or office before your appointment.

Processing

  • All completed returns are electronically filed (e-filed) for FREE the same day we receive final signatures.
  • We offer a variety of ways to receive your refund as well as the option to have your preparation fees withheld which requires NO out of pocket expense.  You can find these options listed in the Tax Appointment Forms tab.

Planning

  • We will review your tax return with you and inform you as to upcoming tax law changes and how that will affect your tax outcome next year.  Due to the change in Administration and the proposed upcoming income tax law changes, we are considering a mid-year tax update.  Advise your tax preparer if you are interested in scheduling this type of appointment. We will help you to achieve your desired refund results.

Problems

  • If you receive a letter or notice from the IRS…always bring it to us for review BEFORE you take action. We will try to resolve the issue to save you the time, money and headache.
  • If you haven’t filed taxes in years, or if you owe back taxes, we can help you get back on track.