Tax Numbers for 2016 and 2015 – Part 2

Tax Numbers for 2016 and 2015 – Part 2

 

The numbers for 2015 in the chart below apply to your 2015 returns, and the numbers for 2016 should be used in your 2016 tax planning.

                                                                        2016                        2015

Income (AGI) phase-out for personal

exemption and itemized deductions

* Single                                                          Starts at $259,400          Starts at $258,250

* Joint returns and surviving spouses             Starts at $311,300          Starts at $309,900

* Married filing separately                              Starts at $155,650          Starts at $154,950

* Head of household                                      Starts at $285,350          Starts at $284,050 

Health savings account contribution limit

* Individual                                                                     $3,350                            $3,350

* Family                                                                           $6,750                            $6,650

* Additional for 55 & older                                             $1,000                            $1,000 

Automobile standard mileage rate

* Business                                                                             54¢                              57.5¢

* Medical/moving expense                                                   19¢                                 23¢

* Charitable work                                                                 14¢                                 14¢ 

Estate tax top rate                                                               40%                                40%

Estate tax exclusion                                                  $5,450,000                     $5,430,000

Annual gift tax exclusion (per donee)                            $14,000                          $14,000

 

Alternative minimum tax exemption

* Single                                                                          $53,900                          $53,600

* Married, joint                                                              $83,800                          $83,400

* Married, separate                                                        $41,900                          $41,700

Section 179 deduction limit                                     $    500,000                    $    500,000

Section 179 purchase limit                                      $ 2,000,000                    $ 2,000,000

Are You Aware of Your Health Care Reporting Requirements?

If you’re an applicable large employer, you may be required to file a new tax form this year. Form 1095-C, Employer-Provided Health Insurance Offer and Coverage, is required for each full-time employee. The form discloses information on the group health insurance coverage you provide.

The filing requirement applies to applicable large employers (ALEs). You’re an ALE if you have a combination of 50 or more full-time employees or full-time equivalent (FTE) employees in the prior year. A full-time employee is anyone working on average 30 hours or more per week, or 130 hours per month. You’ll also need to count “full-time equivalent” employees. These are employees whose actual working hours are less than 30 per week, but whose total combined hours meet the equivalent of full-time.

Keep in mind that special situations may be subject to other rules. For example, a group of companies under common ownership may need to count employees for the entire group. New businesses and those that hire seasonal employees also have different requirements. Finally, remember that if your business offers a self-insurance program, you must file either Form 1095-B or Form 1095-C dependent upon the number of full-time equivalent workers you have.

The 2015 Forms 1095-B and 1095-C are due to your employees by March 31, 2016, and to the IRS by May 31. The IRS deadline is June 30 if you file electronically, which you must do when you issue 250 or more forms. The penalty for not filing these forms if you’re required to is $250 per form, up to $3 million per year.

You may also have another health insurance payroll reporting requirement to remember. When you have 250 or more employees, you need to report the value of health insurance coverage on Forms W-2.

For more details, please call our office.

Call us at (219) 769-3616 with your questions, or email them to dvanprooyen@swartz-retson.com.

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