Don’t risk income tax penalties, remember these important 2016 tax dates to file your federal income tax return
The IRS began accepting individual electronic returns for federal income taxes on January 19th and tax season is in full swing. While most people know the last day they can mail or file their federal income tax return, there are other important 2016 tax dates you need to remember to avoid tough income tax penalties.
Companies were supposed to get all their W-2s and 1099 statements mailed out by the first day of February. The last day to file your federal income tax return has actually been moved back a few days this year but that doesn’t make it any less stressful.
Check out these important 2016 tax dates to stay on track. If you’re still trying to decide how to file your income taxes, check out our TaxAct vs TurboTax review to get your max refund.
February 16
Investment and financial companies are required to mail out their 1099-B, 1099-S and 1099-MISC forms for gains and losses on stocks, bonds and mutual fund holdings. If you own any financial investments in these or real estate, expect to receive one of these forms.
The 1099-S is for gains on real estate assets while the MISC form covers rent, royalties and prizes you may have won over the year.
February 29
Farmers and fisherman who have a balance due on their taxes must file individual returns and pay the balance by the end of February to avoid tax penalties. This isn’t for the casual fisherman or your backyard plot but for larger businesses. The rule only applies if your farming or fishing income was at least two-thirds of your total gross income.
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April 18
The tax deadline for federal income tax returns is Monday, April 18th this year due to observance of Emancipation Day in the District of Colombia. You need to have your income tax return in the mail or e-filed by this day to avoid tax penalties. The 18th is also the last day to request an extension which provides an additional six months to file your taxes.
Don’t forget to max out those retirement accounts! April 18th is the last day to make a 2015 contribution to your traditional IRA, Roth IRA, Health Savings Account (HSA), SEP-IRA or solo 401k. You can deduct contributions to your IRA and HSA accounts from your taxes, lowering your current tax bill. You pay taxes now on your Roth contributions but get to enjoy the withdrawals tax-free in retirement.
April 19
You’ll get one more day to file your federal income taxes if you live in Maine or Massachusetts. This is because of the Patriots Day observance in those two states on Monday.
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June 15
If you are a U.S. citizen living abroad, you have until June 15th to file your federal income taxes. Don’t forget, you may qualify for the Foreign Earned Income Exclusion if you live outside the United States for at least 330 days over a 12-month period and have resident status in a foreign country. The exclusion will lower your regular income taxes but does not reduce the portion of your self-employment tax.
This is also the last day U.S. citizens living abroad can file for a four-month extension on their income taxes.
June 30
The end of June is the last day for taxpayers with more than $10,000 in a foreign bank account to report it. There are no extensions allowed on this one and the government is cracking down on money overseas, don’t avoid it.
October 17
If you filed for an extension on your income taxes, this is the final deadline to file your taxes. This tax deadline applies to both U.S. citizens living in American and overseas.
There aren’t many 2016 tax dates to remember so avoid nasty tax penalties and start putting together your income taxes now. You don’t have to do everything at once. Put your documents together first, then start filling out your return another day but don’t put it off too long.
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