Ready for the end of 2016?

Time seems to pass so fast…and one year rolls into another. Make good use of the last few days of this year to help you save next year on your 2016 individual income tax returns!

• Thinking of making a charitable contribution? Use your credit card or put your check in the mail prior to December 31 to count for 2016.
• Most seniors (older than age 70½) are required to take their minimum required distributions from Individual Retirement Accounts (IRA) prior to the end of the year. An exception exists if you turned 70½ during 2016; you have until April 1, 2017 to receive your distribution.
• Need to make a retirement contribution? Most workplace retirement planning accounts must be funded by the end of the year, and the contribution limit for a 401(k) is $18,000.
• If your retirement account is an IRA, you get until April 18, 2017 to contribute. Taxpayers aged 50 and older may contribute up to $6,500 to traditional and Roth IRAs, or up to $15,500 for a Simple IRA.

Other important things to do include:

• Notify the US Postal Service and the IRS if you moved. Send Form 8822 to the IRS. Also, if you moved from the area covered by your Marketplace health insurance plan be sure to notify the Health Insurance Marketplace.
• Notify the Social Security Administration (SSA) if you or a dependent changed names due to marriage or divorce. SSA and IRS records must match to prevent tax return processing problems, which could possibly delay your refund.
• If you possess an Individual Taxpayer Identification Number (ITIN) and haven’t used it on a tax return in the past three years, it’s no longer valid and you must renew it. (ITINs are issued to individuals who must maintain an identification number as a taxpayer but aren’t eligible for a Social Security number.) In addition, ITINs with the middle digits 78 or 79 expire January 1, 2017. File Form W-7 to renew your ITIN now.

As always, the key to a successful tax season is good preparation! If the experienced accountants at Patrick & Robinson CPAs can help with planning or tax services let us know: Office@CPAsite.com or 904-396-5400.Happy New Year!