Public Service Loan Forgiveness Program (PSLF)

Did you know that you may be eligible to have your student loan debt forgiven?  Certain employees of the public sector including law enforcement, military, teachers, public health professionals and certain non-profit association employees may be eligible for the PSLF program after serving for 10 years at a public agency and making regular, full loan payments for 120  months.  Only payments made after October 1, 2007 qualify.

For additional information, forms and full eligibility rules for the program,  contact the Loan Consolidation Center at 1-800-557-7392 or visit them on the web at https://studentaid.ed.gov/sa/repay-loans/forgiveness-cancellation/public-service




Call soon for your tax appointment at (209) 329-1255 or email me at tinataxpro@softcom.net.

Tina

2017 Tax Law Changes

Happy New Year!  I hope everyone had a wonderful Holiday season!  This past year, many accomplishments have been achieved.  Joe, my 16 year old son, earned his student pilot's license.  He will earn his private pilot license when he turns 17 this May.  James is doing well, and continues to be a high achiever in school with Math Olympics and winning top 3 in the DAR Essay contest.  And, Natalie got married to a fine gentleman who is serving in the United States Air Force.  So we are all doing well and enjoying life!

So, here we go with my 22nd tax season!  Here are the latest tax updates for this coming tax season:

1. The IRS announced delayed refunds for taxpayers who receive the Earned Income Tax Credit and the Additional Child Tax Credit.  Refunds will NOT be released until February 15, in order to combat identity theft and tax fraud.

2.  Beginning on Jan. 1, 2017, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:

• 54 cents per mile for business miles driven, down from 57.5 cents for 2016
• 17 cents per mile driven for medical or moving purposes, down from 19 cents for 2016
• 14 cents per mile driven in service of charitable organizations

3.  Flexible Spending Arrangements:   Now is the time to contribute to your FSA with your employer and you can then use funds to pay qualified medical expenses not covered by their health plan, including co-pays, deductibles and a variety of medical products and services ranging from dental and vision care to eyeglasses and hearing aids.  The annual amount you may contribute is $2,600 and rollover up to $500 into the next year with amounts not spent.

4.  Identity Theft, Phishing Scams, and other Tax Scams:  The IRS remind you to beware of ongoing scams that affect taxpayers across the nation each year. 

• Requesting fake tax payments: The IRS has seen automated calls where scammers leave urgent callback requests telling taxpayers to call back to settle their “tax bill.” These fake calls generally claim to be the last warning before legal action is taken. They may demand payments on prepaid debit cards, iTunes and other gift cards or wire transfer. The IRS reminds taxpayers that any request to settle a tax bill using any of these payment methods is a clear indication of a SCAM.
• Targeting students and parents and demanding payment for a fake “Federal Student Tax”: Telephone scammers are targeting students and parents demanding payments for fictitious taxes, such as the “Federal Student Tax.” If the person does not comply, the scammer becomes aggressive and threatens to report the student to the police to be arrested.
• Sending a fraudulent IRS bill for tax year 2015 related to the Affordable Care Act: The IRS has received numerous reports around the country of scammers sending a fraudulent version of CP2000 notices for tax year 2015. Generally, the scam involves an email or letter that includes the fake CP2000. The fraudulent notice includes a payment request that taxpayers mail a check made out to “I.R.S.” to the “Austin Processing Center” at a Post Office Box address.
• “Verifying” tax return information over the phone: Scam artists call saying they have your tax return, and they just need to verify a few details to process your return. The scam tries to get you to give up personal information such as a SSN or personal financial information, including bank numbers or credit cards.

5.  Affordable Care Act:  The new President-elect has vowed to repeal the ACA; however, tax provisions remain in place until any changes are made.  The penalty for the 2016 tax year for not signing up for coverage increased to either 2.5% of household AGI or a maximum of $2,085 ($695 per adult, $347.50 per child). For the 2017 tax year, the percentage stays the same, but the per-person fee will be inflation-adjusted.

6.  The Saver's Credit is still available to low to moderate income taxpayers who wish to be able to save more for retirement, and receive a credit for the 2016 tax filing year.  You may add to an existing IRA or set up a new IRA by the tax return final filing date (April 18, 2017) and take the tax advantage for the 2016 filing year.  The maximum credit is $1,000 for Single taxpayers and $2,000 for Married taxpayers.  There are certain income limitations: 

• Married couples filing jointly with incomes up to $61,500 in 2016 or $62,000 in 2017;
• Heads of Household with incomes up to $46,125 in 2016 or $46,500 in 2017; and
• Married individuals filing separately and singles with incomes up to $30,750 in 2016 or $31,000 in 2017.  

I hope everyone enjoyed their New Year celebrations!  Call soon for a tax appointment (209) 329-1255!

TINA