11th Hour Tax Filing Changes for 2016: Are You Affected?

{2:05 minutes to read} Two important and recent changes may impact your 2016 tax-filing process.

11th Hour Tax Filing Changes for 2016: Are You Affected? by Susan Moussi

Health Coverage Status

The President’s Executive Order on January 20th, 2017, directed federal agencies, including the IRS, to begin implementing plans for a full repeal of the Affordable Care Act (ACA). As of this past February, health coverage status is no longer required to be reported on the individual tax return for the 2016 tax year.

Continue reading

The Alimony Recapture Rule: What It Is & How to Avoid It

The Alimony Recapture Rule: What Is It & How to Avoid It by Susan Moussi

{2:10 minutes to read} The alimony recapture rule is a potential tax consequence when alimony is paid for a period of fewer than three years and when there are dramatic drop-offs in the amount paid from year to year. 

There are times when alimony may be paid by one spouse to another for a very short period of time. When this happens, the payor of alimony risks the possibility of having to report so-called phantom income. 

Continue reading