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Tax Tips & Updates

New Ohio Income Tax Requirement for 2016

Ohio, along with other states, will require driver’s license information for the primary taxpayer and spouse (if Married Filing Jointly) beginning in tax year 2016.

This new requirement is in an effort to combat stolen-identity tax fraud.

Taxpayers will be asked to provide the information from their driver’s license or state issued identification card. For taxpayers who do not have a driver’s license or state ID card, they will have the option to indicate such and still be allowed to e-file.

Recap of This Year's IRS "Dirty Dozen" Tax Scams

The Internal Revenue Service today wrapped up its annual "Dirty Dozen" list of tax scams. Taxpayers need to guard against any ploys to steal their personal information, scam them out of money or talk them into engaging in questionable behavior with their taxes.

During the past year, as part of the Security Summit initiative, the IRS partnered with states and the tax industry to enhance coordination and create a more secure system for taxpayers. Participants now regularly share details of fraudulent schemes detected so both industry and government can provide increased protection. Many enhancements are invisible to taxpayers.

Taxpayers are encouraged to review the list in a special section on IRS.gov and be on the lookout for these scams. Many of these con games peak during filing season as people prepare their tax returns or hire someone to do so. The IRS this week also renewed a consumer alert for e-mail schemes after seeing an approximate 400 percent surge in phishing and malware incidents so far this tax season. (IR-2016-28)

Here is a recap of this year's "Dirty Dozen" scams:

What To Do If You Received Form 1095-B

You will receive Form 1095-B - which is a new form this year – from your health insurance provider if you had insurance for you or your family members. The term “health insurance providers” includes insurance companies, some self-insured employers, and government agencies that run Medicare, Medicaid or CHIP.

You are likely to get more than one form if: You had coverage from more than one provider, you changed coverage or employers during the year, or if different members of your family received coverage from different providers.

You Received A Form 1095-A . . . Now What?

Did you receive form 1095-A and are wondering what to do with it?

Form 1095-A, Health Insurance Marketplace Statement, provides you with information about your health care coverage if you or someone in your family enrolled in coverage through the Health Insurance Marketplace. Most individuals did not enroll in Marketplace coverage and will not receive this form.

The Marketplace may send you more than one Form 1095-A if any of these apply: Members of your household were not all enrolled in the same health plan, you updated your family information during the year, you switched plans during the year, or you had family members enrolled in different states.  The form is not new, but some people may receive it for the first time this year.

What You Need To Know About Taxable vs Non-Taxable Income

All income is taxable unless a law specifically states that it isn’t.  Taxable income includes money you earn, like wages and tips. It also includes bartering, an exchange of property or services. The fair market value of property or services received is normally taxable.

Some types of income are not taxable except under certain conditions, including:

Tax Tips For The Self-Employed

If you are self-employed, there are a few basic things you should know about how your income affects your federal tax return. Here are six important tips from the IRS:

► Self-employment can include income you received for part-time work. This is in addition to income from your regular job.
► You must file a Schedule C, Profit or Loss from Business, or Schedule C-EZ, Net Profit from Business, with your Form 1040. You may use Schedule C-EZ if you had expenses less than $5,000 and meet certain other conditions. See the form instructions to find out if you can use the form.

How To Get A Copy Of A Prior Year's Tax Return From The IRS

If we prepared your tax returns for you, we keep copies of all your documents, so you can simply request a copy of your return from us at any time.

You can also get a Tax Return Transcript, a Tax Account Transcript, as well as actual copies of your tax returns from the IRS.  Here are the details:

Tax Return Transcript.  A return transcript shows most line items from your tax return just as you filed it. It also includes any forms and schedules you filed with your return. However, it does not reflect changes made to the return after you filed it. If you are applying for a mortgage, most mortgage companies require a tax return transcript and participate in our Income Verification Express Service program. If you are applying for financial aid, you can use the IRS Data Retrieval Tool on the FAFSA website to import your tax return information to your financial aid application. In both of these cases, you won’t have to request a transcript directly from the IRS.

Do You Qualify For The Child Tax Credit?

The Child Tax Credit is an important tax credit that may save you up to $1,000 for each eligible qualifying child. Be sure you qualify before you claim it. Here are five useful facts from the IRS on the Child Tax Credit:

For the Child Tax Credit, a qualifying child must pass several tests:

Age. The child must have been under age 17 at the end of 2015.

Relationship. The child must be your son, daughter, stepchild, foster child, brother, sister, stepbrother, stepsister, half brother, or half sister. The child may be a descendant of any of these individuals. A qualifying child could also include your grandchild, niece or nephew. You would always treat an adopted child as your own child. An adopted child includes a child lawfully placed with you for legal adoption.

IRS AND FREE FILE ALLIANCE REACH NEW AGREEMENT FOR FREE TAX SOFTWARE

The Internal Revenue Service and Free File Inc., also known as the Free File Alliance, today announced a new five-year agreement that guarantees free, federal tax preparation software products for 70 percent of all taxpayers.

The new agreement opens the door for innovations such as importing prior year information and requests for additional options for free state tax returns so that taxpayers have a seamless experience. It also provides greater transparency regarding any charges associated with state tax return preparation.

TAX TIME GUIDE: AUTOMATIC TAX-FILING EXTENSIONS NOW AVAILABLE; USE FREE FILE TO GET SIX MORE MONTHS TO FILE

The Internal Revenue Service today reminded taxpayers who are unable to complete their tax returns on time that it’s easy to get more time to file their return. In fact, it can even be done online.

This is the ninth in a series of 10 daily IRS tips called the Tax Time Guide. These tips are designed to help taxpayers navigate common tax issues as the April 15 deadline approaches.

For taxpayers who haven’t yet filed their taxes, the IRS has this advice: don’t panic. Taxpayers who need more time to complete their tax return can request an automatic six-month extension.

Contact

DJL Accounting & Consulting Group, Inc.
1570 South Canfield-Niles Road #C102
Youngstown, Ohio 44515 

Phone:  330 779 0781

               

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