Important Reminders for the Upcoming 2018 Filing Season

As you begin to get ready for the upcoming 2019 filing season here are some important reminders:

Delay in Federal Refunds for Returns that claim EITC or Additional Child Tax Credit

Remember, by law any refunds on federal returns that claim EITC or Additional Child Tax Credit cannot be issued until mid-February.
These refunds will begin to be released on February 15 and should be in taxpayer's accounts by the end of February.

Affordable Care Act Penalty for 2018 returns

The repeal of the individual penalty provision for not having health insurance does not go into effect until 2019.
Therefore, as we approach the beginning of the 2019 filing season, the individual penalty (individual shared responsibility payment) applies for 2018. This means that if an individual did not have health insurance for all or part of 2018 and did not qualify for an exemption then they will owe a penalty on their 2018 federal return.
If it is determined that an individual does owe a penalty for 2018, it is calculated as the greater of :

2.5% of the individual’s income that exceeds their 2018 filing threshold (standard deduction for their filing status), or
A flat dollar amount that is assessed for the taxpayer, spouse, and dependents as follows:

$695 for taxpayer, spouse, and dependents over age 18
$347.50 for each dependent under age 18

The maximum family flat dollar amount for 2018 is $2,085

Expiration of ITINs

ITINs are identifying numbers assigned to taxpayers who do not qualify for a Social Security Number.
At the end of 2018 the following ITINs will expire and must be renewed if an individual wants to use it on a 2018 federal return:

ITINs with middle digits of 73, 74, 75, 76, 77, 81 or 82.
ITINs that have not been used at least once in the last three consecutive years

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All information provided is general in nature and intended to create awareness, not to address the specific circumstances or concerns of any individual or entity. Although we try to provide correct and timely information, we cannot guarantee the accuracy of any information or that such information will continue to be accurate in the future due to the changing nature of the tax laws. Before acting on any of the information provided here, you should consult with a professional advisor who knows all of the unique facts and circumstances pertinent to your particular situation.