Wednesday, February 10, 2016

Taxes for Writers 2016 Version

It's THAT time of year again!

First, I’ll give you links to my standard Taxes for Writers post from last year, and another post on DBAs that you may find helpful.

Second, here are some of the changes to the tax code for 2015 taxes. I hope I got the most relevant ones.

Increased penalty for not having health insurance. Here are exceptions to the penalty:

A new tax credit for getting health coverage through state-run exchanges. You can either claim this with your insurance company to lower your premiums, or can claim it on your taxes.

FSA (Flexible Spending Account) limits have gone up. There are also changes in rollovers. If you roll over into next year the $500 you were previously permitted, you can’t do an HAS (Health Savings Account). (You can still carry over FSA money for specific expenses and those include caring for a relative at home, which is nice.)

Bitcoin income will count this year, back to 2014. (Is that crazy or is it just me?)

401(k) limits have gone up. If you’re under 50, you can contribute $18,000, an increase of $500. For those over 50, the limit went up $6000 to $23.000. Sometimes it’s good to be older.

The income brackets changed. Here’s a 22-page IRS link. Page 5 is the beginning of the bracket information.

IRA rollovers—only one per year.

Standard deductions up (I would hope so, don’t they always go up?), but not much. $100 for single and $200 for married filing jointly.

See the first link below for some odd deductions, in case you’re taking clarinet lessons to correct an overbite, or you give business gifts, or your doctor is treating you for weight loss.

Basic information from:

More information is also here, on myRA, foster care of relatives:

And, of course, here:

Disclaimer: I am not giving professional legal, tax, or accounting advice. The above are what have been helpful to me as a writer, filing taxes, looking at this as a formal tax professional.

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