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Tax Changes for 2016 Tax Returns

1.  Due date of return.  File your tax return by April 18, 2017. The due date is April 18, instead of April 15, because of the Emancipation Day holiday in the District of Columbia—even if you do not live in the District of Columbia.

2.  Educator expenses. You may be able to deduct certain expenses for professional development courses you have taken related to the curriculum you teach or to the students you teach.

3. Child tax credit and additional child tax credit may be disallowed. If you take the child tax credit or the additional child tax credit even though you aren’t eligible, you may not be able to take these credits for up to 10 years.

4. American opportunity credit may be disallowed. If you take the American opportunity credit even though you aren’t eligible, you may not be able to take this credit for up to 10 years.

5. Health coverage tax credit (HCTC). The HCTC is a tax credit that pays a percentage of health in-surance premiums for certain eligible taxpayers and their qualifying family members. The HCTC is a separate tax credit with different eligibility rules than the premium tax credit. You may have received monthly advance payments of the HCTC beginning in July 2016. For information on how to report these payments or on the HCTC generally, see the Instructions for Form 8885.

6. Personal exemption amount increased for certain taxpayers. Your personal exemption is increased to $4,050. But the amount is reduced if your adjusted gross income is more than:

  • $155,650 if married filing separately,
  • $259,400 if single,
  • $285,350 if head of household, or
  • $311,300 if married filing jointly or qualifying widow(er)

7. Limit on itemized deductions. You may not be able to deduct all of your itemized deductions, if your adjusted gross income is more than:

  • $155,650 if married filing separately,
  • $259,400 if single,
  • $285,350 if head of household, or
  • $311,300 if married filing jointly or qualifying widow(er)

8. Standard mileage rates. The 2016 rate for business use of your vehicle is 54 cents a mile. The 2016 rate for use of your vehicle to get medical care or to move is 19 cents a mile.

9. Adoption credit. The adoption credit and the exclusion for employer-provided adoption benefits have both increased to $13,460 per eligible child in 2016. The amount begins to phase out if you have modified adjusted gross income (MAGI) in excess of $201,920 and is completely phased out if your MAGI is $241,920 or more.

10. Exemption amount for alternative minimum tax (AMT). The exemption amount for the AMT has increased to $53,900 ($83,800 if married filing jointly or qualifying widow(er); $41,900 if married filing separately).

11. Standard deduction for head of household filing status. For 2016, the standard deduction for head of household filing status has increased to $9,300. The other standard deduction amounts are unchanged.


Source: www.irs.gov/pub17








Last updated: 01/13/2017