To Clients and Friends of Denby Financial Services –

It’s that time of year again! The 2016 Tax Filing season officially begins on Monday January 23^rd, as the IRS begins accepting electronically filed returns.

Regarding some of your tax related documents:

• W-2’s and 1099’s are due to employees and contractors by Jan 31^st
• 1099-Div/1099-B/1099-INT – Dividends & Interest due by Feb 15th
• Form 1095 – Health Care Insurance Coverage: Due date to employees is March 2^nd…This can be impactful to those who may not have been covered for the entire year

• Note: For those who may not need a consultation… you can mail your documents directly to me or drop them off in my secure mailbox for your convenience

Note Filing due dates:

• Federal and State Income Taxes for 2016 are due Tuesday April 18, 2017 (due to the Emancipation Day holiday in Washington DC)
• ***important change for Partnership returns – Due date has been moved up to Wednesday March 15, 2017 to coincide with other Corporate returns

2016 Tax Law Updates

Here are just a few items that may impact 2016 returns:

• Standard Deductions increase to – Married $12,600; Single $6,300; Head of Household $9,300 (additional deductions available to those 65 or older)
• Personal Exemptions increase to $4,050
• Social Security wage base is $118,500
• Healthcare Insurance individual mandate – due to the Affordable Care Act (Obamacare) those who are uninsured will face a penalty of $695 per person up to a family ceiling of $2,085
• IRA and Roth IRA deductions remain unchained for those eligible at $5,500 (+$1,000 catch-up for those 50 or older)
• **note for 2017 planning purposes – 401k contribution limits remain at $18,000 (+$6,000 for those 50 or older)

New Jersey

There have been some significant changes to the tax laws in NJ, however these mostly pertain to tax year 2017:

• Estate Tax – beginning on 1/1/17 Estates subject to this tax have been increased to a value of $2 million from the previous $675k…the NJ Estate Tax is fully eliminated beginning 1/1/18
• Sales Tax – has been reduced to 6.875%
• Veterans Exemption – A $3k exemption may apply to certain qualifying veterans for tax year 2017

Investment Advisory Services

For those of you who are interested.. I’m able to provide clients with investment advice and access to products such as IRA’s, Investment accounts, certain Educational Accounts, and Rollovers.

**For those covered by a retirement plan at work you could still contribute to a deductible IRA for 2016 if your adjusted gross income is below $71,000 for singles and below $118,000 for married couples. For ROTH IRA’s you can contribute if your AGI is below $132,000 for singles and below $194,000 for couples (phase out of the allowable amounts might be dependent upon your income).

Please contact me if you would like to discuss Investment Advisory Services further.

Best Wishes for a Happy and Healthy New Year! – JD