TurboTax 2016 Online Tax Preparation Software
Turbo Tax 2016 Tax Software Review
What better way is there to start the New Year then with a tax program that ensures you the biggest refund. TurboTax 2016 does just that! In fact, they guarantee it!
For 2016, certain tax deductions and benefits previously available to millions of Americans will no longer be available. Additionally, there are many changes to the rate structures, exemptions, phase outs etc.
A Summary of some of the Most Important Tax Law Changes for 2016 include:
- Sales Tax
- New vehicle sales tax
- Unemployment Income
- Home Buyers Credit
- Educator expenses
- Roth IRA conversions
- Deduction and exemption phase outs
- Charitable contributions
- Alternative minimum tax
- Retirement savings 401k plans, IRAs, and Roth plans.
- Hope and Lifetime Learning tax credits
- Mileage & standard deductions
TurboTax 2016 can keep you on top of Income Tax Changes for
2016 which will become part of your income tax filing for the
new tax season.
Tax Law Changes:
Sales tax – Individuals will no longer be able to take an itemized deduction for state and local sales tax.
New vehicle sales tax - Effective January 1, 2016, individuals will no longer be able to take the itemized deduction or increase in standard deduction for sales tax on the purchase of a new motor vehicle.
Unemployment income – In 2016 unemployment benefits can no longer be deducted from your taxable income.
Home buyers credit – If you got a home buyers tax credit
in 2008, you are required to start paying the credit back in
Educator expenses – Teachers are no longer allowed to deduct out of pocket expenses incurred for school supplies, how crazy is that stupid law change. So much for teacher initiative.
Roth IRA conversion – There are no income limits in 2016 for individuals that would like to convert a traditional IRA to a Roth IRA. Also, for any conversions in 2016, the tax will have to be paid.
Phase outs - For 2016, there is no phase out of itemized deductions or personal exemptions. This change will benefit higher income earners.
Charitable contributions made directly from an IRA account to a qualified charity will no longer be excluded from your income
Alternative Minimum Tax – The AMT exemption is scheduled to decrease to $33,750 for single filers and to $45,000 for those filing a married joint return.
Retirement contributions - Maximum contribution values remain unchanged that individuals make to a 401(k) plan in 2016. This remains at $16,500. The catch up contribution of $5,500 for individuals age 50 + also remains the same.
Hope Scholarship and Lifetime Learning Credits use taxpayer's
modified adjusted gross income for 2016 to determine their reduction.
Credit reductions start for taxpayers with an AGI in excess
of $80,000, or $160,000 for those filing joint returns for the
Hope Credit. Thresholds for the Lifetime Learning Credits remains
at $50,000, or $100,000 for those filing joint returns in 2016.
Mileage reimbursement rates – The updated mileage reimbursement rates effective for January 1, 2016 are $0.50 business purposes, $0.165 medical purposes and $0.14 for charitable purposes.
Intuit Turbo Tax 2016 keeps you on top of your Standard Deductions:
According to the IRS, about two out of every three US taxpayers claim the standard deduction annually on their income tax returns. 2016 tax laws show only one change to the standard deductions - the head of household standard deduction went up by $50, all other values remain the same as before.