Tuesday, Jan. 19, marked the first day the Federal Government would accept tax filings for 2015. For that reason, this edition of the Financial Fitness Zone will focus on some items you should know before you file this year.
So you're thinking about that tax deadline. It's looming right? Here's why 2016 is a great year. Look at February. You've got an extra day (February 29th). It's a “leap year”, thanks calendar. But in April check this out. The Feds don't work Friday the 15th which is your typical tax deadline. You've got the 16th, 17th, all the way to the 18th 'til D-day! That’s four extra days to file your taxes this year.
My fellow Americans, isn’t it great that we all get to pay our patriotic dues? Gee thanks, Uncle Sam! Of the 150,000,000 Americans who file, 82 million qualify for a tax refund and that's a lot of business for tax professionals--$7.7 billion in fact.
But you don’t have to pay that much to file. In fact, you might not have to pay anything! The IRS has made it very easy for them to take your money or to give you that refund. Check out IRS Free File on www.irs.gov.
When it comes to your family, filing jointly, up to $18,551 you don’t pay any taxes. But from there it starts to go up in tiers:
- 15% is the tax rate for income up to $75,301.
- 25% up to $151,901.
- 28% up to $231,451.
- 33% up to $413, 501. 35% up to $415,051.
- 39.6% is the top tax rate for all income above that level.
With 9 out of 10 Americans filing online, it pays to know some of these tax tips before you log-on and click that send button.