New Year Tax Refund Filing Tidbits

Peter VanderWoude, CPA, CGMA

January 1, 2017

Soon we’ll have a new President and likely there will be some tax changes made for the 2017 tax year. Before that happens, we have to worry about filing our 2016 income tax returns.

There are some things to keep in mind in the next month or two that will likely delay the e-filing of your tax return or at least delay the expected receipt of your income tax refund.

With Form W-2 wages and Form 1099-MISC (non-employee compensation) filed with the IRS earlier this year (by January 31), the IRS is working to stem identity theft and tax refund fraud. For those of you that receive the Earned Income Tax Credit and/or the Additional Child Tax Credit, the federal government will not be paying out any part of your income tax refund before February 15.

New York State likes to manually check tax refunds before releasing them. Some of you may have to verify information on your e-filed return. Usually it is simple like submitting copies of W-2s, etc. Establishing an online account at www.tax.ny.gov will speed the process.

Another delay to filing or receiving a tax refund is health insurance reporting. Don’t disregard the Forms 1095-A, 1095-B or 1095-C you receive in the mail. Your tax preparer needs them to fill out your tax return properly. If you have health insurance through an employer or through medicare, you will receive a Form 1095-B or 1095-C. If you receive insurance through the health exchanges and receive a Premium Tax Credit (PTC) to help pay for health insurance, you will receive Form 1095-A. If you estimated your income for 2016 too low, you will likely have to pay some of that PTC back in your return. If you did not receive a Form 1095-A, but should have, you will have to contact the health exchange for a copy.

The Forms 1095 may not be sent to you until late February or even later. If you filed your tax return without entering in Form 1095-A information, you will receive an IRS tax notice and must fax in the proper information.

Don’t worry! Filing tax returns can be a pain but it’s not worth pulling out your hair! Your tax professional will let you know what is needed.

Have a wonderful and prosperous New Year!

   

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