IRS recommendations: what the taxpayer should do before the end of 2016 of the year

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The season for filling out tax returns is approaching, but there are things that need to be done before the end of the tax year 31 December, so that the process of filling out documents is easy and hassle-free.

The list of recommended actions published US Internal Revenue Service (Internal Revenue Service - IRS).

For most taxpayers, December 31st is the last day to take action that will impact their 2016 tax returns. For example, charitable contributions are tax deductible in the year they are made. Credit card donations made before the end of 2016 count toward the 2016 tax year, even if the card was not paid until 2017. Checks issued for charity purposes, are recorded in the 2016 declaration for the year, if they are mailed by 31 December.

Usually, Americans older than 70,5 years should receive payment data from their individual retirement accounts, as well as pension plans from their workplaces until the end of 2016, although a special rule allows those who have reached 70,5 years in 2016, to postpone receiving these data until 1 April 2017 of the year. All pension contributions from organizations must be made and fixed before the end of the year, while individuals can do so before 18 April 2017.

For 2016, the maximum pension contribution that can be deducted from taxes is $ 18 thousand. For Roth IRA programs, this limit is $ 6,5 thousand for the age from 50 years, for the Simple IRA program the limit reaches $ 15,5 thousand for the age from 50 years.

Taxpayers who have moved must provide their new address to the US Postal Service, their employer, and the IRS (this is used 8822 form).

If you changed your name due to marriage or divorce, you must notify the IRS as well as the Social Security Administration (SSA) so that your name matches both organizations. You must also notify the SSA if the names of people in your care have changed.

Please note that from January 1, the individual tax identification number (ITIN), which has not been used for the previous 3 years, will be invalid and cannot be used to file a declaration.

In addition, Individual Identification Numbers whose average digits are 78 or 79 will also expire on January 1, 2017. If you are among the group of people whose ITINs will become invalid, it is worth starting the process of updating your numbers now.

Issuing a new ITIN can take from 7 to 11 weeks. Those who do not receive a new number before the deadline for filing declarations may have problems with tax refunds and tax credits.

More information about ITIN - here.

The IRS also advises taxpayers to keep copies of previous returns and related documents, since converting the system to an electronic form may require entering data for previous years, which will be easier to do if copies are available. More information about the possibility of filing declarations electronically is available at link.

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