Gather your paperwork as soon as possible to benefit from the perks of early tax filing this year. With tax season fast approaching, you can get your refund within three weeks of filing your return as well as reducing the risk of identity theft. Check out what’s happening within the tax world in 2015.
IRS Comes Early in 2015
The Internal Revenue Service is stepping into gear early this year as the tax season kicks off on January 20th. The government will start processing paperwork and electronic returns even though you may not have your W-2 form by then. Employers have until the end of the month to mail out the necessary tax forms. Don’t stress, you will have until April 15th to file your federal taxes.
Despite Congress extending 50 tax breaks in December, the start of the tax season will not be delayed. If you happened to catch any of those last-minute tax breaks only effective in 2014, you could see a bigger refund. Some of these items include charitable contributions, commuting costs, tuition payments and big sales purchases.
Healthcare Proof Requirement
There may be a few bumps in the road when it comes to filing your taxes this year. Mandates from the Affordable Care Act require proof of health insurance when citizens file their taxes. As mentioned above, you can start filing yours as early as January 20th, and if you have health insurance, expect to file more forms. One of those is the 1095-A form, which is released by your insurance provider. Some insurers may not release these forms until the end of the month, so you’ll have to sit tight until then.
If you’re not insured or were not insured for at least three months in 2014, you may see a tax penalty. Depending on your reported income, the fine will either be $95 or 1% of your modified income. However, you may eligible for an exemption if you became insured within the last three months of 2014 or have an income that is below the poverty line. If you became insured in October of 2014, you may qualify for this exemption to avoid the penalty. For more information about the Affordable Care Act and your 2015 taxes, please visit www.healthcare.gov.
Let Gonzalez & Arrambide help plan your taxes to make life a little bit easier this year. To learn more about tax preparation and how we can serve you, contact the McAllen CPAs from Gonzalez & Arrambide at 956-447-9009.