The period to file your 2015 taxes begins tomorrow and with it comes both good and bad changes to keep in mind while preparing.
Jim Duffield with Liberty Tax in Soldotna says the good news is that tax breaks that looked to be going away were permanently implemented by an act of U.S. Congress.
Duffield: “Some of the tax breaks that you get every year have to be renewed almost every year by congress, or every four or five years and this bill that they passed actually made a large number of those permanent. We thought that a lot of them were going to go away such as deductions for home mortgage interest, some depreciation items if you own a small business, some things to do with medical expenses.”
The Protecting Americans from Tax Hikes Act of 2015 passed in December and included extending credits for energy-efficient home improvements as well as college tuition deductions.
The bad news comes by way of changes regarding the Affordable Care Act: this is the first year that employers are required to report on their employees’ coverage.
And, just like in 2014, Duffield says there will be a penalty for anyone who did not have healthcare in 2015.
Duffield: “They will get assessed those penalties on their income tax form. Last year the minimum was $95 or one percent of their household income. This year it is two percent of your household income, or a minimum of $325 penalty per person, up to $975 per family.”
This year’s tax filing season begins earlier than the past four years and will end April 18.