NASE Alerts: Tax Changes Every American Should Know Before Filing This Year’s Tax Returns

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Small Businesses Offering Health Reimbursement Accounts May Continue Without Threat of Penalty

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Every year, there are changes and updates to the tax code every small business owner and taxpayer should know as they prepare to file this year’s tax returns.

Millions of American small businesses and taxpayers only have a little over a month before the deadline on April 18th to file this year’s tax returns. In preparation, the National Association for the Self-Employed (NASE), the nation’s leading advocate and resource for the self-employed and micro-businesses, today released a list of changes and adjustments to the tax code along with important tips and resources for filing accurate returns and ways to reduce their tax liability.

“Every year, there are changes and updates to the tax code every small business owner and taxpayer should know as they prepare to file this year’s tax returns,” said Keith Hall, President and CEO of NASE. “From an update in the mileage reimbursement rate to investment contributions to changes in the Affordable Care Act, now is the time to make sure you have the information you need. With congressional action last year, small employers can now continue to offer Health Reimbursement Accounts to their employees without fear of a penalty.

“Don’t forget to be creative – think outside the box. If you have a kid at home, under age 18, who helps in your business, by creating a job for him or her, you can save over $2,400 in taxes for money that you are already giving them anyway.

“Knowing these changes and updates can help ensure you can reduce the tax you owe while filing accurate returns this year.”

2016 TAX CHANGES AND ADJUSTMENTS (AND REMINDERS)

  • The Affordable Care Act (ACA) penalty for non-compliance
  • Potential individual exceptions to the ACA penalty
  • A streamlined, standard home office deduction available
  • The standard mileage rate for business use of an automobile is 54 cents per mile for 2016 tax returns
  • Limits for retirement plan contributions such as SEPs. IRAs and 401(k) plans may have changed for your situation
  • New This Year -- the lawful applicability of Health Reimbursement Accounts (HRAs) without penalty

Click here to watch the NASE Minute where Keith Hall explains how to “Hire Your Kid” and save thousands in taxes.

Click here for tips on preparing your tax returns this year. For more information on completing your tax documents, visit NASE’s tax resource center or the IRS or the Small Business Administration (SBA).

The National Association for the Self-Employed (NASE) is the nation's leading resource for the self-employed and micro-businesses, bringing a broad range of benefits to help entrepreneurs succeed and to drive the continued growth of this vital segment of the American economy. The NASE Small Business Locator helps identify and connect our nation’s smallest businesses. In addition, NASE’s new health care portal helps small business owners navigate the nation’s health care marketplace. The NASE is a 501(c) (6) nonprofit organization and provides big-business advantages to hundreds of thousands of micro-businesses across the United States. For more information, visit the association's website at NASE.org

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Kristofer Eisenla
Luna Eisenla Media
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