2016 Filing Season Begins on Jan 19, 2016

By Modesto Matheu, CPA

modesto.matheu@gmail.com

832-498-1012

The Internal Revenue Service announced today that the nation’s tax season will begin as scheduled on Tuesday, Jan. 19, 2016.  However, some tax preparation software packages are ready to process tax returns earlier than the 19th in preparation for the IRS schedule date.  So, there is no advantage for people filing earlier other than being among the first in line when the IRS processing begin.

The 2015 filing due date may differ depending on your state of residence state.

The filing deadline to submit your 2015 tax returns is Monday, April 18, 2016, rather than the traditional April 15 date.  (Washington, D.C., will celebrate Emancipation Day on that Friday, which pushes the deadline to the following Monday for most of the nation.)

Residents of Maine and Massachusetts deadline is Tuesday, April 19. (Due to Patriots Day Holiday on Monday, April 18.) 

On recordkepping

All taxpayers should make sure they have all their year-end statements, such as: Forms W-2 from employers, Forms 1099 from banks and other payers, and Form 1095-A from the Marketplace for those claiming the premium tax credit. Including all other schedules, logs, and other tax documents.

What is the recommended filing option?

Choosing to e-file and direct deposit (e.g., refund) remains the fastest and safest way to file an accurate income tax return and receive a refund.  

When do I get my refund?

The IRS anticipates issuing more than nine out of ten refunds in less than 21 days. Every case is different and some made take longer than others.

For help contact your tax professional or the IRS (IRS.gov). 

Source: IR-2015-139, Dec. 21, 2015

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2016 Standard Mileage Rates 

The 2016 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes, are:

• 54 cents per mile for business miles driven
• 19 cents per mile driven for medical or moving purposes
• 14 cents per mile driven in service of charitable organizations

Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.

A taxpayer may not use the business standard mileage rate for a vehicle after using any depreciation method under the MACRS or after claiming a Section 179 deduction for that vehicle. In addition, the business standard mileage rate cannot be used for more than four vehicles used simultaneously.

They are other requirements (e.g., travel log) for a taxpayer to use a standard mileage rate to calculate the amount of a deductible business, moving, medical or charitable expense.  

Source IRS.gov 

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