Your 2016 Income Taxes
(and was)
12-18-2016, 02:48 PM
#12
Another possible good tip that makes sense some year for those of us that have a STATE income tax.
If you itemize deductions, consider paying your FINAL quarterly estimated STATE INCOME tax payment in DECEMBER rather than the usual Jan 15th due date. Thus you can claim it THIS TAX YEAR rather than waiting until filing your Federal tax forms in spring 2018.
If you itemize deductions, consider paying your FINAL quarterly estimated STATE INCOME tax payment in DECEMBER rather than the usual Jan 15th due date. Thus you can claim it THIS TAX YEAR rather than waiting until filing your Federal tax forms in spring 2018.
12-18-2016, 05:28 PM
#13
Thread Starter
Another possible good tip that makes sense some year for those of us that have a STATE income tax.
If you itemize deductions, consider paying your FINAL quarterly estimated STATE INCOME tax payment in DECEMBER rather than the usual Jan 15th due date. Thus you can claim it THIS TAX YEAR rather than waiting until filing your Federal tax forms in spring 2018.
If you itemize deductions, consider paying your FINAL quarterly estimated STATE INCOME tax payment in DECEMBER rather than the usual Jan 15th due date. Thus you can claim it THIS TAX YEAR rather than waiting until filing your Federal tax forms in spring 2018.
Also consider making a charitable contribution from your RMD (if you are over 70 1/2). When you take your RMD you can have the custodian make a charitable contribution using part of it. This contribution will not count as income. There's a bit more to it, speak to your tax professional.
12-18-2016, 05:39 PM
#14
Thread Starter
As compared, talking about the budget is interesting.
Last edited by ralper; 12-18-2016 at 05:42 PM.
12-18-2016, 05:55 PM
#15
I hate to admit it, but there probably is nothing worse than when a group of accountants get together for a dinner. The only thing less interesting than speaking about tax law for 4 hours is talking about gaap (generally accepted accounting principles) for 4 hours. Trust me on this, it's pure torture.
As compared, talking about the budget is interesting.
As compared, talking about the budget is interesting.
12-22-2016, 06:13 PM
#16
Thread Starter
One week to go. Take your capital losses and pay your state taxes now. If the tax rates come down next year, you'll be better off with the deduction in 2016. You only have 1 week to go.
12-25-2016, 04:12 AM
#17
Thanks for the info. Rob. I just did my I.R.A. for 2016.
01-02-2017, 05:18 PM
#18
Thread Starter
Now that 2016 is over its a good time to think about funding your IRA for 2016 if you haven't already. You only have until April 15th to do this whether or not you file your return or extend it until October 15th. Be advised that even if you extend your return, all tax due must be paid by April 15th (This year its April 18th as the 15th is on a Saturday and the 17th is Emancipation Day in Washington, DC and the IRS offices are closed). Depending on your income level and whether or not you are covered by a pension plan you will have to decide between a traditional, roth or non-deductible IRA. If your income is high enough and/or you are covered by a pension plan an IRA may not be available to you. Please speak to you CPA or tax advisor. If it is available and you don't make the contribution you are making a mistake.
If you are self employed you might want to consider a SEP. This is the one plan where you can make a contribution up to the day the return is filed, even an extended return. This is a very smart thing to do. Again, before doing anything, please speak to your CPA or tax advisor.
As mentioned earlier, now is a very good time to start putting your tax papers together. You probably haven't yet received your year end 1099s (brokerage and bank statements) but you probably have all of your donations receipts and letters and you probably have many necessary tax papers. You will very shortly have your W-2s and you should have all of you 1099s by the first week in February. If you are a partner in a business the gives off K-1s or are involved in a Trust that gives off K-1s you should have thme by the end of March (unless the company or trust takes an extension until September). The earlier and more organized you get these items to your CPA or tax advisor the better it is for everyone.
Very important
If you have any assets overseas (bank accounts, real estate and etc.) you have to file a FBAR. This is very important. The penalty for not filing is severe, perhaps the most severe penalty the IRS has. Previously this form was not due until June 15, but starting with the tax year 2016 this form is due April 15 (April 18). Unlike prior years, it can be extended, but you must file the form or an extension to avoid the penalties. As always, please speak to your CPA or tax advisor.
If you are self employed you might want to consider a SEP. This is the one plan where you can make a contribution up to the day the return is filed, even an extended return. This is a very smart thing to do. Again, before doing anything, please speak to your CPA or tax advisor.
As mentioned earlier, now is a very good time to start putting your tax papers together. You probably haven't yet received your year end 1099s (brokerage and bank statements) but you probably have all of your donations receipts and letters and you probably have many necessary tax papers. You will very shortly have your W-2s and you should have all of you 1099s by the first week in February. If you are a partner in a business the gives off K-1s or are involved in a Trust that gives off K-1s you should have thme by the end of March (unless the company or trust takes an extension until September). The earlier and more organized you get these items to your CPA or tax advisor the better it is for everyone.
Very important
If you have any assets overseas (bank accounts, real estate and etc.) you have to file a FBAR. This is very important. The penalty for not filing is severe, perhaps the most severe penalty the IRS has. Previously this form was not due until June 15, but starting with the tax year 2016 this form is due April 15 (April 18). Unlike prior years, it can be extended, but you must file the form or an extension to avoid the penalties. As always, please speak to your CPA or tax advisor.
01-02-2017, 05:56 PM
#20
Thread Starter
The maximum IRA contribution for 2016 is $5,500 unless you are over the age of 50 at December 31, 2016 in which case the maximum contribution is $6,500.