5 Things to Know about Your Tax Filing Process This Year

The time has come for every American to change their way of thinking when it comes to taxes. You are now faced with an entirely new era of the taxation laws and regulations that will affect every American citizen of every generation. The real estate investors in particular have to get to the core changes of the new laws and regulations in the real estate business or else they could lose everything. This will include every person who has an inheritance in their name within the real estate business. Here are some of the changes:

Keep the Filing Dates in Mind

Federal filing dates start on the 23rd of January and end on the 18th of April, 2017. Emancipation day, usually a holiday, will be on the 17th of April. This means you will have some extra days this year. On the other hand, if you are not ready to file your returns, you can ask for a filing extension, which is usually six months. However, it is advisable to remember to pay so as to avoid being charged for tax evasion. Also, do not forget to pay your annual IRS contribution.

Free Calculation Help for Tax Payers

If your earning is over $64,000, you are eligible for a free calculation service, says the IRS. This means you can get the free file software. This is a free tax preparation software that has been available to all who have been earning $62,000. It is now available to those earning from $64,000 and above. This, therefore, means you file your returns and electronically pay your taxes. It is faster and easier.

Expect Some Delays

If you are planning to claim earned income credit or additional tax credit, prepare yourself for some delays of up to February 2018. The IRS will, during this period, be working to combat fraud so if you want to make some claims in a fraudulent manner, beware and be wary. If you have no issues, then you can get your refund in even 21 days of filing. To know the status of your refund, you can go to “where’s my refund” on the IRS website.

Penalty for Lack of Health Insurance

If you do not have health insurance, you will be penalized when you file your tax returns. The penalties are now higher compared to those of 2015. In 2016–2017, it will be $695 and$347.50 for an adult and a child, respectively. You have up to the 31st of January, 2017 to enroll for health insurance.

Tax Payer Identification Number

If your individual tax identification number has the numbers 78 or 79 in the middle, it will soon expire. If you have not used the ITIN number for the last 3 years, you will need to renew it as soon as possible. This process will take between 7 to 11 weeks. Get the latest W-7 form and start the process. The laws have changed and are bound to be used when you will be filing your 2017 tax returns. It is a whole new experience that is vital for you to know and understand. If you’re conce ed about how real estate will affect your taxes this year, visit a professional at RE/MAX Real Estate Group or a similar business close to you.