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DEVELOPMENTS FOR 2016For tax years beginning after December 31, 2015, Partnership and S Corporations must file their tax returns by the 15th day of the third month after the end of the tax year. Thus, entities using a calendar year will have to file by March 15 of the following year. This moves the filing deadline for Partnerships forward one month.C Corporations must file by the 15th day of the fourth month after the end of the tax year. Thus, C Corporations using a calendar year must file by April 15 of the following year. This moves the filing deadline for C Corporations back one month. A special rule will allow C Corporations with a June 30 year end to delay this change until 2025.Employers must file W-2’s and W-3’s, as well as 1099-Misc for nonemployee compensation, with the Social Security Administration by January 31.The Social security Wage base has increased significantly from $118,500 to $127,200 for 2017.TAX PROVISIONS EXTENDED RETROACTIVELY TO 1/1/16The itemized deduction for sales tax when it is larger than the state and local income taxes paid;The $250 deduction for classroom supplies available to qualified educators;The opportunity for taxpayers age 70 ? or older to donate a maximum of $100,000 to a charitable organization from their IRA account…this can be used to satisfy their “required minimum distribution”;The “before adjusted gross income” deduction for qualified tuition and fees paid to post secondary educational institutions (maximum of $4,000);The favorable 15 year depreciation for certain property improvements and new construction;The 50% bonus depreciation available for new equipment purchased by a business;The residential energy credit for individuals (life time limit of $500)Business Equipment Expensing Election (Section 179) – A $500,000 expensing deduction is available for new and used equipment purchased by for business use.TAX PROVISIONS CONTINUING IN 2016Additional Medicare Tax on Earned Income – An additional .9% Medicare tax will be imposed on wages and self-employment income in excess of $200,000 for single taxpayers and $250,000 for married taxpayers filing a joint tax return. Employers are required to withhold this additional tax when an individual’s income exceeds $200,000.Medicare Tax on Unearned Income – a 3.8% Medicare tax will be imposed on the lesser of net investment income (interest, dividends, royalties, and rents) or modified adjusted gross income in excess of $200,000 for single taxpayers and $250,000 for married couples filing a joint tax return.Itemized Deductions for Medical Expenses – The threshold to claim an itemized deduction for medical expenses has increased from 7.5% to 10%. Therefore, only those medical expenses in excess of 10% of a taxpayer’s adjusted gross income will be allowed as an itemized deduction. For taxpayers age 65 and older, this provision is postponed until 2017.Health Flexible Spending Account Limit – Salary reductions for health flexible spending arrangements within cafeteria plans will now be limited to $2,550.ESTATES AND TRUSTSThe ordinary income tax rates for trusts and estates are unchanged except that the 35% tax bracket has been increased to 39.6%.The capital gains tax rates for trusts and estates have been changed permanently:0% for net long term capital gains subject to the 15% ordinary income tax rate;15% for the net long term capital gains subject to the 25%, 28%, and 33% ordinary income tax rates;20% for the net long term capital gains subject to the 39.6% ordinary income tax rate.Qualified dividends received in trusts and estates will continue to be taxed as long term capital gains.The federal estate and gift tax maximum rate is 40%.The federal estate and gift tax exemption has been increased to $5,450,000 and is indexed to inflation for future years. The portability feature (surviving spouse is able to add any unused exemption of deceased spouse to his/her exemption) has also been retained. These provisions are permanent.AFFORDABLE CARE ACTThe individual requirement for minimum essential coverage remains in effect. Health insurance can be employee-sponsored, coverage through the state or federal exchanges, Medicare, Medicaid, or other qualified plans. Insurance coverage must be in place each month of the year to avoid penalties. A premium assistance tax credit will be available for those families within 400% of the federal poverty line for their family size AND purchased insurance through the Health Insurance Marketplace (Exchange). Taxpayers receiving premium assistance through the Health Insurance Marketplace will receive a Form 1095-A detailing the coverage and credits received for 2016. Any credits received will be subject to recapture if the income of the taxpayer is higher than estimated on the application for premium assistance submitted upon entering the marketplace. Penalties for lack of insurance will range from $695 to $13,380 depending upon the income and insurance situation of the taxpayer.REVIEW OF MICHIGAN INCOME TAXAll non-refundable credits are gone.Michigan Homestead Property Tax Credit – No credit is available if the taxable value of the homestead is greater than $135,000 or if the “household resources” (all taxable and non taxable income with a deduction for insurance premiums paid, but no deductions for business or rental losses) is $50,000 or more (credit is reduced prorata for household income between $41,000 and $50,000). The credit for seniors and disabled taxpayers is reduced by 4% for each $1,000 of household resources in excess of $21,000 (maximum reduction of 40% for household resources of $30,000 or more).It has been our pleasure to serve you in 2016! REVIEW OF MICHIGAN INCOME TAX (CONTINUED)Retirement Income – The taxation of retirement income now depends on the year that you were born (for married couples the birth date of the oldest spouse is used):For taxpayers born before 1946, no changes were implemented...single taxpayers are allowed to exclude over $47,000 in 2015 and married couples filing jointly were allowed to exclude over $94,000. These amounts are indexed to inflation.For taxpayers born from 1946 through 1952, the exemption for pension income will be $20,000 for single taxpayers and $40,000 for a joint return until the taxpayer reaches 67 years of age. After age 66, the $20,000/$40,000 exemption applies to all income. Regardless of age, the exemption is eliminated if household income exceeds $75,000 for single taxpayers and $150,000 for a joint return.For taxpayers born after 1952, the exemption for pensions is eliminated until age 67. After age 66, an exemption of $20,000 for single taxpayers and $40,000 for joint tax returns applies to all income, including social security income. Taxpayers will have the option of exempting all of the federal taxable social security income instead of the $20,000/$40,000 exemption. If the $20,000/$40,000 exemption is used, the taxpayer will not be able to use the social security exemption or the standard personal exemption. The $20,000/$40,000 exemption will be eliminated if household income exceeds $75,000 for single taxpayers and $150,000 for joint tax returns.Get Refund StatusPlease enter your Social Security Number, your Filing Status and the refund amount as shown on your tax return. *See our Privacy Notice regarding our request for your personal information. Social Security Number You must enter the SSN or IRS Individual Taxpayer Identification Number shown on your tax return. Please enter Social Security Number here. - - Please enter the first three digits of your Social Security Number. Please enter the second two digits of your Social Security Number. Please enter the last four digits of your Social Security Number. Filing Status Please select the Filing Status shown on your tax return. Please select a Filing Status here. Single Married-Filing Joint Return Married-Filing Separate Return Head of Household Qualifying Widow(er) Refund Amount You must enter the exact whole dollar Refund Amount shown on your tax return. Providing the exact whole dollar amount is essential to receiving the correct response.Please enter Refund Amount here. $ Submit Button Please select this button to continue getting your Refund Status. Bottom of FormNote: For security reasons, we recommend that you close your browser after you have finished accessing your refund status. IRS Privacy PolicyThe deduction for dividends, interest, and capital gains is now available for individuals age 67 and older (was age 65). The deduction is limited to about $10,000 for single taxpayers and $20,000 for joint tax returns and is indexed for inflation. 1) Website: 2) Click on 2) Select 3) Enter personal information 1) Website: taxes2) Under "Popular Resources & Services", select "My Income Tax Refund Status"3) Select 4) Choose "Check My Tax and Refund Information"5) Box below appears - enter pertinent personal information Check My Refund StatusReturn filing information available for:?Electronically Filed ReturnsAllow 14 days from the date you received confirmation your e-filed state return was accepted, before information will be available to view.Returns filed by US MailAllow 6-8 weeks from the date you mailed your state return before information will be available to view. HYPERLINK "" \l "SWEApplet4" \o "" Ignore Link HYPERLINK "" \l "SWEApplet1" \o "Self Service Login" Ignore Link Top of FormThis is a secured site. Enter the following information to verify your personal tax information. Social Security Number: Enter the primary filer's 9-digit social security number as it appears on the tax return. {Example: 123456789}Last Name: Enter the last name as it appears on the tax return. No spaces or punctuation marks accepted. Bottom of FormWant to get your refund faster next year?Check out the convenience of e-File. To learn more about this service click ?e-File?Want to skip that trip to the Bank next year?Check out the convenience of Direct Deposit. To learn more about this service click ?Direct Deposit?Bottom of FormTop of Form 6) Choose "Check My Tax & Refund Information"7) Box below appears - enter pertinent personal informationTax Authentication?Tax Year: Select a tax year from the drop down list as it appears on your tax return.$Adjusted Gross Income (AGI) or Total Household Resources (THR): Enter the AGI or THR for the year you are inquiring about. Enter whole dollar amounts only. (example: 14500)Filing Status: Select a filing status from the drop down list as it appears on your tax return.? After entering your information, please click Submit only once.? Processing your information may take a few seconds.?Bottom of FormIMPORTANT REMINDER: Please be alert this time of year for phone & phishing scams! Do not give any confidential personal information to anyone that initiates a call to you. Be aware that the "real" IRS will never contact you by phone! Phishing scams by email are also popular between now and April 15. Do not give any confidential personal information to anyone that initiates contact by email. The IRS will not contact you via email! You should also never click on any attachments from sources that you are not familiar. This is a common way for criminals to place malware on your computer that will steal confidential personal information and send it to them.2016 TAX TABLESTAXMARRIEDSINGLERATEFILING JOINTLY09,27510%018,5509,27637,65015%18,55175,300 37,65191,15025%75,301151,90091,151190,15028%151,901231,450190,151413,35033%231,451413,350413,351415,05035%413,351466,950OVER415,05139.6%OVER466,951MARRIEDTAXHEAD OFFILING SEPARATELYRATEHOUSEHOLD09,27510%013,2509,27637,65015%13,25150,40037,65175,95025%50,401130,15075,951115,72528%130,151210,800115,726206,67533%210,801413,350206,676233,47535%413,351441,000OVER233,47639.6%OVER441,0012016 STANDARD DEDUCTIONSSingle$6,300Married filing separately$6,300Head of Household$9,300Married filing jointly$12,600Surviving spouse$12,600PERSONAL EXEMPTION FOR 2016 = $4,050 ................
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