Changes Everyone Needs to Know for the Current Tax Year

At Brew City Insurance it is our mission to offer customers a truly exceptional insurance buying experience. We provide our customers with the knowledge to choose the best possible insurance products that fulfill their wants and needs. Our friendly, knowledgeable and professional staff will help inspire, problem-solve, and best of all EDUCATE our customers so they can choose the coverage that best fits at a reasonable price.

Every year there are changes. Here are a just few...

Tax Day is April 18 (not the 15th)

April 18 is the official IRS deadline for 2017. Since the IRS can’t schedule the filing deadline to take place on a holiday or weekend, everyone will have 3 extra days to file.

Standard Deduction Change

The standard deduction for Heads of Household is up and additional $50 moving to $9,300. The remaining standard deductions will stay the same as they were for 2015.

$6,300 for singles and married couples filing separate returns
$12,600 for married couples filing jointly.

Certain Early filers may see a slight delay in receiving their tax refund.

The Protecting Americans from Tax Hikes Act mandates the IRS must hold refunds on tax returns only on those claiming the Earned Income Tax Credit or the Additional Child Tax Credit.
This year the IRS will begin to release refunds on 02/15/2017, which means your money won’t arrive in until the week of Feb. 27 at the earliest. Remember ~ financial institutions don't process payments on weekends or holidays. While the delay might seem inconvenient, it gives the IRS more time to detect and prevent tax fraud that was rampant the last few years.

Implementation of W-2 verification codes will increase

The IRS is extending its fraud detection program to verify information on W-2 forms to combat identity theft. To aid this effort, the tax agency has increased number of W-2 verification codes from 2 million last year to nearly 50 million. This helps the IRS validate that the prepared tax submission is real.

This code is a 16-digit code that will appear in a separately labeled box stating:
“Verification Code: If this field is populated, enter this code when it is requested by your tax return preparation software. It is possible your software or preparer will not request the code. The code is not entered on paper-filed returns.”
Note - The IRS assures that tax returns with omitted or incorrect W-2 Verification Codes will not delay the processing of a tax return.

Increase in the ACA health insurance penalty

The Affordable Care Act mandates that individuals without insurance are required by law to have insurance unless you qualify for an exemption. Anyone who goes three or more consecutive months without coverage must pay a penalty when they file their taxes.

This tax season the penalty for not having healthcare is 2.5% of total household adjusted gross income or $695 per adult —whichever is more. If you have children under 18, there is an additional penalty of $347.50/child with maximum of $2,085 per family.
Here are a few of the exemptions that will keep you from having to pay the penalty. Some of the most common include if you:

• lived abroad for more than a year
• are exempt from filing a tax return because your income is too low
• have religious objections to the use of insurance
• qualify for a hardship exemption due to an issue such as homelessness, bankruptcy, eviction or a similarly dire circumstance.
• are in prison (you get it for free there)

You can claim an exemption when you file your tax return, or apply on the Healthcare.gov website.

If you have any other questions click here for the OFFICIAL IRS web site.

Bottom Line ~ taking care of your finances is a very important part of the path to success. Brew City Insurance can also help you on that path by saving you money and making sure you are properly covered.

Come in to Brew City Insurance for a no-obligation insurance review.

Brew City Insurance Agency Inc. is located at:
2937 S Chicago Ave. in South Milwaukee between Pick N Save and Walgreens.
Stop in today and see what we can do for you!
Or call 414-762-6600 and we can quote you right over the phone.
We have several companies to choose from.
We can also cover you if you do decide to open a business.

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