New 2017 tax Laws - The Things to Note
2017 is the year of change in many ways. Although the Trump administration has pledged numerous tax changes, there are pre existing changes included in the law that can affect your 2017 tax returns (which you submit in April 2018). Also, there are other changes that affect your taxes for 2016, which come into force in 2017. These are the key changes to bear in mind:
Timing of tax credits -- The 2015 PATH (Protecting Americans from Tax Hikes) Act states that the IRS is forbidden from sending out refunds or credits for overpayments before February 15th, whenever the EITC (Earned Income Tax Credit) or ACTC (Additional Child Tax Credit) is claimed on returns. This policy comes into force on January 1st, 2017. It does not affect the amount of your 2016 return, however it might reduce your cash flow, in the event that you wanted a reasonably early return to settle bills.
Coverage for healthcare -- Restrictions are increasing for MSAs (Medical Savings Accounts) for self employed people. The largest deductible sum for self only cover, with respect to out of pocket costs, is $4500. $6750 is the deductible limit for plans with family cover, and $4500 is the minimum deductible sum for yearly family cover. All these cover plans have gone up by $50.