The calendar has turned to 2017. It’s time to start preparing for 2016 income tax returns if you haven’t already done so. We’ve put together some helpful information and dates to keep in mind as you prepare your return.
Tax Season Begins
Monday, January 23, 2017 is the official start of tax season, when the IRS will begin accepting electronic returns. Of the 153 million tax returns expected to be filed this year, the IRS estimates that four of five will be prepared electronically, using tax preparation software. The IRS will begin processing paper returns that day as well.
Tax Documents Mailing Deadlines
Tuesday, January 31, 2017 is the mailing deadline for most important tax documents, including Forms W-2 and 1099 and bank interest or retirement account distribution documents. The mailing deadline for Forms 1099-B (sales of stocks, bonds, or mutual funds), 1099-S (real estate transactions) and 1099-MISC is Wednesday, February 15, 2017.
Tax Return Deadline
Tuesday, April 18, 2017 is the deadline to submit your 2016 tax return or file an extension. The traditional tax deadline of April 15 falls on a Saturday this year. Typically, the deadline would be extended to the first Monday following the 15th; however, Monday, April 17 is Emancipation Day, a legal holiday in Washington, D.C., and federal offices will be closed.
Extended Tax Deadline
Monday, October 16, 2017 is the extended tax deadline for individual returns. Anyone can file for a six-month extension, which gives you additional time to file your return, but does not give you additional time to pay if you owe a balance. Form 4868, the application for an extension, has a submission deadline of April 17.
According to the IRS, the fastest and safest way to file and receive a refund is to choose e-file and direct deposit. Typically, the IRS process nine out of 10 refunds in fewer than 21 days. In 2017, however, a new law goes into effect requiring the IRS to hold refunds until at least February 15 on tax returns claiming the Earned Income Tax Credit (EITC) or the Additional Child Tax Credit (ACTC). The IRS cautions taxpayers that these refunds most likely will not arrive in bank accounts until the week of February 27.
Ramsay & Associates offers both personal and business tax preparation and planning services. We pride ourselves on our attention to detail and expert knowledge. Please contact us if you would like more information or to schedule an appointment. Call us at 651.429.9111.