Income Tax Preparation & Small Business Accounting

IMPT! Forms 1095-A, Forms 1095-B, Forms 1095-C to be received in 2017!!

For tax year 2016, the deadline for the Marketplace to provide Form 1095-A is January 31, 2017.

The deadline for insurers, other coverage providers and certain employers to provide Forms 1095-B and 1095-C has been  extended to March 2, 2017.

  • If you are expecting to receive a Form 1095-A, you should wait to file your 2016 income tax return until you receive that form.  
  • It is not necessary to wait for Forms 1095-B or 1095-C in order to file. HOWEVER, Other forms of documentation must be used! Forms to be used in lieu of the 1095 to provide proof of your insurance coverage include:
  1. Statement from your company (Human Resources) stating Who had coverage, which months, and with what Insurance Company
  2. Or documentation / statement from an employer indicating coverage and who is covered and dates of coverage.  OTHERWISE use

(2 or more of following)

  1. Insurance Cards (Medicare Card)
  2. W-2 and beginning and end of pay stubs showing medical deductions.
  3. Medicare – SSI or Soc Sec end of year statement
  4. Letter/statement from your insurer
  5. Explanation of Benefits
  6. Record of advance payments of the premium tax credit.
  7. Records of advance payments of the premium tax credit

Child-Related Tax Benefits Comparison
Our handy chart shows some of the basic eligibility requirements for tax benefits available to those with a qualifying child. This chart compares the Earned Income Tax Credit (EITC), the Dependency Exemption, the Child Tax Credit and the refundable part of the CTC, the Additional Child Tax Credit (CTC/ACTC), the Head of Household filing status and the Child and Dependent Care Credit.
View Chart

IL Withholding Income Tax Changes
This bulletin summarizes the Illinois Withholding Income Tax changes for tax year 2017, for employers, payroll service providers, software developers, and those that pay gambling and lottery winnings.
Read Bulletin

PATH Act

Protecting Americans from Tax Hikes Act of 2015
Extends laws retroactive to beginning of 2015 and makes some provisions permanent.

Child Tax Credit: will allow for higher credit for Taxpayers who qualify.

American Opportunity Tax Credit (AOTC) is now permanent.
EIC: the enhanced EIC for 3 or more children is permanent.
Educator Expense: (Teacher, Instructor, Counselor, Principal, or Aide who is K – 12 in school at least 900 hours) The $250.00 is permanent and will be indexed for inflation.  These expenses include computers, software, and other materials used in classroom.  Now also included are Professional Development expenses.

State and Local Sales Tax Deduction permanent.
Transportation Fringe Benefits.
Qualified Conservation Contributions
Charitable Contributions from IRA
Contribution of Food Inventory
Qualified Leaseholder Improvement

Code Sec. 179 limits at $500,000 with a $2 million overall investment limit before phase out and will be indexed for inflation in 2016 is permanent.

Research Tax Credit
100-Percent Gain Exclusion on Qualified Small Business Stock held more than 5 years is permanent

And many more items were extended though not permanent:

Qualified Tuition Expense Deduction
Mortgage Debt Exclusion
Mortgage Insurance Premium Deduction (MIP) through 2016

So much more was covered in the Tax Act including Energy Extenders.  Over 50 “Tax Extenders”; but also the Act contains over 80 non-extender-related tax provisions.

Highway Act Changes include:

Tax Return Due Dates Changed for Business Returns

FBAR Due Date is Changed  to April 15th instead of June 30 and extension is possible.

Tax Return Extensions Changed for Corporations, Trusts, Partnerships, S-Corps, FBAR, and non-profits Form 990 series.

Form 1098, Mortgage Interest Statement

Basis Consistency with Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return

Clarification of the 6-year Statute of Limitation for Assessment

Applicable Large Employer Definition Changes for Purposes of the Affordable Care Act

Transferring Excess Pension Assets

Health Saving Accounts for Veterans

Excise Tax on Alternative Fuels

The due dates for business tax returns have changed.

C corporations will generally be due the 15th day of the fourth month after year end. This is April 15 for calendar year corporations.

C corporations with a June 30 year end will continue to be due on the 15th day of the third month, which is September 15, until tax years beginning after December 31, 2025.

Partnership returns will be due the 15th day of the third month after year end. For calendar year partnerships, this will be March 15.

S corporations will be due the 15th day of the third month after year end. For calendar year S corporations, this will be March 15.

These due dates are for tax years beginning after December 31, 2015. The first tax return impacted by these changes will be the 2016 tax returns.

FBAR Due Date Changed
The Highway Act changes the date that FinCen 114 is due. The FBAR will be due on April 15 instead of June 30. In addition, taxpayers can now request a 6 month extension of time to file the FBAR.

Tax Return Extensions Changed
The time periods for extensions have been changed for tax years beginning after December 31, 2015. They are:

5 months for C corporations who file on a calendar year until tax year 2026.

5½ months for calendar year trusts.

6 months for partnerships and S corporations.

6 months for the FBAR.

6 months for calendar year non-profits who file Form 990 series.

6 months for any C corporation with taxable years ending on days other than December 31 or June 30.

7 months for C corporations with taxable years ending on June 30, but only for taxable years beginning before January 1, 2026.







ABP Tax Services is proud to provide affordable, quality tax preparation to McHenry County and the surrounding areas, including Wonder Lake,
Woodstock, McHenry, Crystal Lake, Harvard, Lake in the Hills, Elgin, Huntley, Rockford, Cary, Fox River Grove, Hebron, Algonquin, Lakewood, Alden,
Marengo, Spring Grove, Johnsburg, Chicago and more. We also provide remote tax preparation for out of state clients all over the US including
Missouri, Indiana, Florida, Virginia, Washington, California, Ohio and others. We can prepare and file local income tax forms for all 50 US states.