Minor Changes This Tax Season

By the end of January, all employers should have W-2’s sent out in the mail.

One of the few changes this year relates to the tax deadline, normally set for April 15. This year, due to April 15 falling on a Sunday and Emancipation Day, celebrated in the District of Columbia, celebrated on April 16; the tax deadline is April 17, according to the IRS.

So what else is in store for taxpayers?

The biggest in the individual Michigan law is some of the pension income that people used to receive that was tax free is now going to be taxable.” according to Claude Titche, CPA Partner at Beene Garter, Grand Rapids.

Reports show that if you were born before 1942, it is still tax free. If you were born between 1946 and 1952 and 1956, a portion of it is taxable and if you were born after 52, then your pension income is probably taxable.

 Titche went on to say, “There’s some other small changes on whether you can deduct some interest in dividend income if you don’t have a pensioned income.”

Titche said the best thing to do when going to get your taxes done, is to make sure that you are prepared with any type of receipts or ledgers you may need.

And also, he recommends e-filing, which is also highly recommended by the government.

“If you are getting your refund you’re going to get it much, much, quicker than if you file paper.” he added.

His biggest words of advice, “Just step back, take your time, you may still make mistakes but you’re not going to make major mistakes.”

If you think that filing an extension, means you have six extra months to pay your estimated taxes that you owe, think again. That means you have six extra months to finalize your filing.

For additional help and advice, check out www.irs.gov.