Last Minute Tips to Filing Your 2016 Tax Returns

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Updates and Changes to the Tax Code that Can Help You File Audit Proof and Beneficial Returns

With less than two-weeks until the tax filing deadline of April 18th, the National Association for the Self-Employed (NASE), the nation’s leading advocate and resource for the self-employed and micro-businesses, released a list of changes and adjustments to the tax code along with important tips and resources for filing accurate returns and ways to reduce their tax liability.

“Every year, there are changes and updates to the tax code small business owners and taxpayers should know as they prepare to file their tax returns,” said Keith Hall, President and CEO of NASE. “From an update in the mileage reimbursement rate and investment contributions to changes in the Affordable Care Act, now is the time to make sure you have the information you need. With congressional action last year, small employers can now continue to offer Health Reimbursement Accounts to their employees without fear of a penalty.”

Hall penned a guest opinion piece for Entreprenuer.com outlining updates and reminders the American public should know as they file their returns.

“REGARDLESS IF YOU ARE A SELF-EMPLOYED ENTREPRENEUR, SMALL BUSINESS OWNER OR AN AMERICAN TAXPAYER WITH STATUS AS AN EMPLOYEE OF ANOTHER BUSINESS OR CORPORATION, WE CAN ALL AGREE THAT GETTING IT RIGHT AND FILING AN AUDIT-PROOF RETURN IS CRITICAL.  AFTER ALL, AUDITS COULD POTENTIALLY MEAN SIGNIFICANT INCREASES IN THE AMOUNT OF TAX YOU WILL EVENTUALLY OWE, SO BEING PREPARED ON THE FRONT-END WILL REDUCE ANY FUTURE HEADACHES.  WHETHER YOU ARE USING A PROFESSIONAL SERVICE OR DOING IT YOURSELF, THERE ARE CONSEQUENTIAL UPDATES AND REMINDERS FOR THE TAX CODE YOU SHOULD KNOW BEFORE SUBMITTING THIS YEAR’S TAX RETURN.”

“HERE ARE SEVEN THINGS YOU NEED TO KNOW RIGHT NOW AS YOU PREPARE TO FILE YOUR 2016 TAXES:

  1. Health Care Penalty: Despite the rancor in Washington about health care reform, the individual mandate is still in effect and could apply to you for not enrollingin qualified health care plan. However, there are possible exemptions to this penalty.
  2. Home Office Deduction: In its fourth year, small business owners who work from their home can now claim a streamlined, standardized home-office deduction rather than completing a complicated and cumbersome 43-line IRS form.  By simply checking the box on your federal tax returns, you can easily save money by choosing the standard home-office deduction of up to $1,500 for the business use of your home.
  3. Mileage Rate: If you use your automobile for business, you also can deduct a standard mileage rate on your return. The reimbursement rate is 54 cents for 2016.
  4. Retirement Contributions: Limits for retirement contributions have also changed for most Americans. SEPs, IRAs and 401k plans, all allow you to contribute to your own future and take a tax deduction on your 2016 tax return.
  5. Health Reimbursement Arrangements (HRAs): With the enactment of the 21st Century Cures Act late last year, those small businesses who offer HRAs can now do so without the threat of penalty.
  6. Submit Your Return Electronically: By filing your return electronically, you can avoid making errors.
  7. File an Extension: Still need more time? There is always a last minute extension you can file with the IRS if you can’t make April 18th.

Click here to read the full column

Click here for tips on preparing your tax returns this year. For more information on completing your tax documents, visit NASE’s tax resource center or the IRS or the Small Business Administration (SBA).

 

The National Association for the Self-Employed (NASE) is the nation’s leading resource for the self-employed and micro-businesses, bringing a broad range of benefits to help entrepreneurs succeed and to drive the continued growth of this vital segment of the American economy. The NASE Small Business Locator helps identify and connect our nation’s smallest businesses. In addition, NASE’s new health care portal helps small business owners navigate the nation’s health care marketplace. The NASE is a 501(c) (6) nonprofit organization and provides big-business advantages to hundreds of thousands of micro-businesses across the United States. For more information, visit the association’s website at NASE.org

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