Be Prepared for New 2017 Tax Preparation Changes
Tax season has arrived. By now, most people have already received many of their important tax documents from their employers, banks and investment companies. When it comes to filing taxes, most people in Fort Lauderdale have a regular routine. They either visit their accountant, tax preparation service or use computer software. But there are some new changes taxpayers will need to know when filing their returns in 2017. During his campaign, President Donald Trump promised many new changes to the nation’s tax system to help more people save money. Some of those changes have already been instituted and will affect the way thousands will file their taxes in South Florida. Here are some of the most important new changes.
President Trump has already promised to repeal Obamacare, which not only affects the health care coverage of 18 million Americans, it could also affect on how much you are allowed to deduct for medical-related expenses. Because many people anticipated Trump’s victory, some chose not to enroll in the Affordable Care Act. However, those people will still be subjected to a lack-of-coverage penalty. The penalty in 2017 is essentially the same as the previous year. But keep in mind, it will be adjusted due to inflation. The penalty for those who did not sign up for coverage increased in 2016 to a maximum of $2,085 or 2.5% of the household AGI.
There will be greater limits placed on self-employed people with tax-deferred medical savings accounts. The maximum deductions for all out-of-pocket expenses for all self-only coverage will be increased by $50. If you have a family coverage, the limit on out-of-pocket expenses has been increased by $100.
Tax Credit Changes
Many people throughout Fort Lauderdale like to file their tax returns as soon as possible. If you are planning to receive an early refund from the IRS, you may have to exercise a little more patience. Back in 2015, Congress passed The Protecting Americans from Tax Hikes Act (PATH). The legislation, which takes into effect in 2017, prevents the IRS from handing out refunds or tax credits until February 15. It affects people who have claimed additional child tax credit and earned income tax credit. Although it does not affect your 2016 return, it could affect your ability to gain access to much-needed money to pay off your bills early.
Senior Medical Deductions
Fort Lauderdale is home to thousands of seniors and retirees. The tax laws have changed for seniors who are claiming deductions. Seniors must now have medical expenses at least 10% greater than their income to qualify for a deduction. However, there is one exception. If your medical expenses exceed your income by at least 7.5 percent, you will qualify this year. But the exception will be terminated after 2016.
Tax Bracket Adjustments
Due to low inflation, there will be little change to the 2017 tax bracket adjustments. However, there may be more changes coming in the future from President Trump. It is important to stay on top of any changes in tax law. If you are uncertain about how the new tax law changes affect you, it is important to discuss them with a qualified tax professional.
Tax Preparation: A Fort Lauderdale Tax Lawyer Can Help
Attorneys Ira L. Zuckerman not only help people with tax problems, they can also assist with any questions about tax preparation. Together, they bring more than 30 years providing solutions to clients who need answers to even the toughest questions concerning their taxes. To learn more about Tax Representation Fort Lauderdale , contact the law offices of Zuckerman Law, LLC and schedule a consultation today.