Monday, February 1, 2016

Filing Income Tax Now Made Easy

The IRS has made it easy for citizens to file their income tax by planning things in advance and being aware of the return policy updates. The IRS team has recently made some changes to the returns policy and specifically in the area of health insurance. Taxes collected by the Government each year is used to service the public. Tax filing eligibility depends on the income bracket of every individual. The process has been made easy using various online portals. IRS has also laid down some quick tips for the taxpayers this year to help expedite the process.
Documentation
The tax filing focus has shifted on health insurance this year, hence form 1095B and 1095C will be needed by the taxpayers. Information pertaining to salary and taxable income is detailed out in these forms. In addition to this, there is a set of different form which each employer also needs to submit to the IRS with a similar piece of update. 1095A, 1095B and 1095C need to be thoroughly reviewed at an individual level to understand which taxes need to be paid single handed and which can be filed as couple. In addition to this, form W-2, 1098 and 1099 will be needed as required in yesteryears.
Tax filing process/ medium – Online returns will be filed in 2016 over hand filing. To facilitate the process, IRS has introduced free file and free file fillable software. Availability of this software will depend on the income bracket. Besides this, market is also offering software called Turbo Tax which can be used for the same purpose.
Minimizing identity theft – IRS is aware of the identity theft concerns being posed on the taxpayers. To create more awareness on the subject, IRS has been making all efforts to educate every individual by initiating an awareness campaign. These campaigns are focusing on highlighting ways to protect SSN number. Some of these guidelines, like not sharing SSN information with businesses, ITIN or writing on any documentation, using firewalls on computers are also available on the official IRS website. Soon there will be more security measures implemented by the IRS in 2016 in this regard.
Due date – April 15 has been the due date for filing tax, however, due to some federal holidays (Emancipation day and Patriot Day) and the year being a leap year, the due date has been extended. Last day for the entire process cannot be a weekend thereby resulting in an extension of the due date.
Obamacare Penalties – Norms under the Affordable Care Act have been made stricter in 2016 tax filing process. Policy clearly says that if there is any individual who does not have a health insurance, they will have to bear extra penalty under the Act.