CARL WATTS & ASSOCIATES

January 16, 2017

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Filing Your Tax Return
for Tax Year 2016
When it comes to taxes and the taxman, most people flinch and think of April 15 as the most dreaded of all deadlines.

We hope that, every once in a while, we manage to make you forget the flinch, but we know for a fact that you will enjoy April 15 this year since the official IRS deadline is April 18.

This tax season taxpayers have until Tuesday, April 18, 2017, to file their 2016 tax returns and pay any tax due because the Emancipation Day, a holiday in Washington, D.C., will be observed on Monday, April 17, pushing the nation’s filing deadline to April 18.

153 million tax returns are expected to be filed this year and more than 70 percent of taxpayers will receive a refund; remember though that the individual income tax filing season opens only on January 23.

Now is perhaps a good time to remind you that not quite everybody with an income is required to file a tax return. Generally, if your total income for the year doesn't exceed the standard deduction plus one exemption and you aren't a dependent to another taxpayer, then you don't need to file a federal tax return.

The standard tax deduction and exemption amounts are fixed by the government before the tax filing season and generally increase for inflation each year. The table bellow contains the figures for tax year 2016.


Nevertheless, there are several reasons why you may want to file a 2016 tax return even if you do not meet the minimum income requirements:

  • You had taxes withheld from your pay, you must file a tax return to receive a tax refund.
  • You overpaid estimated tax or applied a prior year overpayment to this year, so you must file to receive the refund.
  • If you qualify, you must file a return to receive the refundable Earned Income Tax Credit.
  • You must file to be refunded the American Opportunity Credit, if you qualified for it.
  • If you have a qualifying child but owe no tax, you can file to be refunded the Additional Child Tax Credit.
  • File a tax return to claim the refundable Health Coverage Tax Credit.
  • If you adopted a qualifying child, you must file to claim the Adoption Tax Credit.

Even if your income is below the minimum for your status, you must file a return if any of the conditions below apply for 2016:

1. You owe any special taxes, including:

  • Alternative minimum tax;
  • Additional tax on a qualified plan, including an IRA, or other tax-favored account (but if you are filing a return only because you owe this tax, you can file Form 5329 by itself);

  • Household employment taxes (but if you are filing a return only because you owe this tax, you can file Schedule H by itself);

  • Social security and Medicare tax on tips you didn't report to your employer or on wages you received from an employer who didn't withhold these taxes;

  • Recapture of first-time homebuyer credit;
  • Write-in taxes, including uncollected social security and Medicare or RRTA tax on tips you reported to your employer or on group-term life insurance and additional taxes on health savings accounts.

2. You (or your spouse, if filing jointly) received health savings account, Archer MSA, or Medicare Advantage MSA distributions.

3. You had net earnings from self-employment of at least $400.

4. You had wages of $108.28 or more from a church or qualified church-controlled organization that is exempt from employer social security and Medicare taxes.

5. Advance payments of the premium tax credit were made for you, your spouse, or a dependent who enrolled in coverage through the Marketplace. You, or whoever enrolled you, should have received Form(s) 1095-A showing the amount of the advance payments.

Still confused and uncertain whether you should file a tax return this year?

Please always remember you don’t have to fight this battle on your own, just contact a trustworthy tax professional who will offer you the best option for your specific financial situation and take care of all your dealings with the IRS.
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