2016 tax deductions and changes to look out for - KFDA - NewsChannel 10 / Amarillo News, Weather, Sports

2016 tax deductions and changes to look out for

(Source: KFDA) (Source: KFDA)
(Source: KFDA) (Source: KFDA)
(Source: KFDA) (Source: KFDA)
AMARILLO, TX (KFDA) -

Before filing your taxes this season, be sure to look for a few changes.  

Tax season begins on Jan. 23, but public accountants say it's better not to rush while filing taxes.

Instead, make sure to be aware of the 2016 changes and to also have all the proper information on hand. 

Some of the main changes seen for the 2016 year affect tax brackets which have inflated by roughly 0.4 percent.

Standard deductions are also going up for the head of a household.

The standard deduction for those who qualify as heads of a household will increase by 50 dollars.

Though taxes can be confusing, there have been tax provisions that have been made permanent which Certified Public Accountant's (CPA) say will help simplify this tax season.

"One that affects us in Texas, since the state does not have state income tax, is the ability to deduct state and local sales tax as an itemized deduction," CPA, David Hardgrove, said. "The teachers expensing deduction for classroom expenses, off the front page, where you don't have to itemize to deduct those, that has been made permanent as well."

Hardgrove said he has noticed a continuous problem with tax filers who change their marital status.

"If you are claiming married and one with your employer and your spouse is claiming married and one, well, when you file a joint tax return, there's only an one married standard deduction between the two of you," Hardgrove said. "So, there's potentially $12,000 that has no tax withheld out on it and that it can get nasty and people with a change of marital status like that often get blindsided."

Improperly filing taxes online is another problem that his clients have experienced.

Hardgrove warns, though a website accepts filed information, it doesn't always mean it's correct.

To avoid mistakes and a hefty bill from the Internal Revenue Service (IRS), be sure to collect the proper documentation.

"Make sure that any place that you received income, that if they send a document, such as a W2," Hardgrove said. "Also, get a report for your savings account, interest income, that form number as a 1099, make sure that you get all of the documents. If it's an IRS type of document, the IRS is going to get it. Their computer system is going to be looking for it on your tax return about a year after you have filed it."

The deadline to file taxes or to apply for an extension has also changed this year to Tuesday, April 18, instead of that Monday.

For more information about other changes in 2016, visit the IRS website.

Copyright 2017 KFDA. All rights reserved.

Powered by Frankly