Reminders (2016.04)

In an effort to lighten up these quarterly reminder emails, I have decided to include the funniest thing that happened to me in the past three months.

Back in February, my parents, sister, and I were sitting outside at their house and talking.  My dad brought up how much better their backyard was than mine.  When Christina and I moved into our house, the backyard was basically just grass, and I have been planting trees and trying to get it built up for the past two years.   Unfortunately, probably 1/3 to 1/2 of the stuff I have planted has died.   The rest of tMatt's Backyardhe trees remaining vary in height from 4 – 12 feet tall.  My dad said, “Don’t worry Matt, your backyard will grow and be nice one day, but too bad you probably won’t live to see it.”  My sister quipped, “Neither will his trees!”  Then they all made a family trip to Germany together and left me here to write this reminder email.

 

The closest items due in the list below are:

1)  Individual income tax filings are due (without extension) by April 18, 2016.  Why not April 15 this year?  Emancipation Day (celebrating the day Lincoln signed the Compensated Emancipation Act in 1862, freeing over 3,000 slaves in the District of Columbia) is usually celebrated on the 16th.   The 16th happens to fall on a Saturday this year, so they pushed up the federal holiday to Friday, which in turn pushed the income tax due date to Monday.

Please note that even if you extend your filing date, your actual income taxes are still due by April 18.  It is just the filing that is postponed.

2)  The deadline to contribute to an HSA to be counted for your 2015 income taxes is April 18, 2016.   The single contribution limit for 2015 is $3,350.  The family contribution limit for 2015 is $6,650.  Those aged 55 and older may contribute an additional $1,000.

3)  The deadline to contribute to a traditional or Roth IRA to be counted on your 2015 income taxes is April 18, 2016.   The contribution limit is $5,500.  Those aged 50 and older may contribute an additional $1,000.

4)  The due date for partnership 2015 income tax returns is also April 18, 2016.

5)  Quarterly estimated federal income tax payment is due April 18, 2016 for the period January 1, 2016 through March 31, 2016.

6)  Quarterly estimated federal income tax payment is due June 15, 2016 for the period April 1, 2016 through May 31, 2016.

7)  The deadline to protest your property taxes for real property in most Texas counties is generally May 31, 2016.

 

Federal Income Tax Filing Deadlines (1)               

Tax Filing                          Original Date                      Extension Date (1)

Individual                           April 18                                 October 15

Partnership (2, 3)             April 18                                 September 15

Corporation (2, 3)            March 15                               September 15

1  –  Please note these extension dates are for filings ONLY.  Payments are still due by the original date

2  –  For calendar-year partnerships and corporations.

3  –  The dates for the calendar-year partnership and corporation will change in 2017 (2016 tax year) due to the recent H.R. 3236 bill passed.

 

Property Tax Filing Deadlines

In most Texas counties, you must protest your property taxes by May 31.  The payment deadline is January 31.  Check with your specific county for more information.

 

IRS Quarterly Estimated Income Tax Payments

If the due dates below for making an estimated tax payment fall on a Saturday, Sunday, or legal holiday, the payment will be on time if you make it on the next day that is not a Saturday, Sunday, or legal holiday.

Due Date                              Payment Period

April 15                                 January 1 – March 31

June 15                                 April 1 – May 31

September 15                       June 1 – August 31

January 15                            September 1 – December 31

 

Health Savings Accounts (HSA)

Single Contribution Limit:

$3,350 (2015, 2016)

Family Contribution Limit:

$6,650 (2015), $6,750 (2016)

Catch-Up Contribution:

$1,000 for those aged 55 and older (2015, 2016)

Contribution Deadline:

April 18

 

Flexible Savings Accounts (FSA)

Spending Deadline:

December 31

Optional Grace Period:

March 15, but only if allowed by your employer

Contribution Limit:

$2,550 (2015, 2016)

Optional Carryover:

$500 may be carried over to following year, but only if allowed by your employer (2015, 2016)

 

Traditional Individual Retirement Accounts (IRAs)

Contribution Deadline:

April 18

Maximum Contribution:

$5,500 (2015, 2016)

Catch-Up Contribution:

$1,000 for those aged 50 and older (2015, 2016)

Contribution Limits:

Contributions not allowed in the year you reach 70 ½ and older

Deduction Limits (2015):

If you are covered by a retirement plan at work, no deduction is allowed if –

Single and modified AGI is $71,000 or more

Married and modified AGI is $118,000 or more

Married Filing Separately and modified AGI is $10,000 or more

If you are not covered by a retirement plan at work, but your spouse is covered by a retirement plan at work, no deduction is allowed if –

Married and modified AGI is $193,000 or more

Married Filing Separately and modified AGI is $10,000 or more

Deduction Limits (2016):

If you are covered by a retirement plan at work, no deduction is allowed if –

Single and modified AGI is $71,000 or more

Married and modified AGI is $118,000 or more

Married Filing Separately and modified AGI is $10,000 or more

If you are not covered by a retirement plan at work, but your spouse is covered by a retirement plan at work, no deduction is allowed if –

Married and modified AGI is $194,000 or more

Married Filing Separately and modified AGI is $10,000 or more

 

Roth Individual Retirement Accounts (IRAs)

Conversion Deadline:

December 31

Contribution Deadline:

April 18

Maximum Contribution:

$5,500 (2015, 2016)

Catch-Up Contribution:

$1,000 for those aged 50 and older (2015, 2016)

Contribution Limits (2015):

Contributions are not allowed if –

Single and modified AGI is $131,000 or more

Married and modified AGI is $193,000 or more

Married Filing Separately and modified AGI is $10,000 or more

Contribution Limits (2016):

Contributions are not allowed if –

Single and modified AGI is $132,000 or more

Married and modified AGI is $194,000 or more

Married Filing Separately and modified AGI is $10,000 or more

Deduction Limits:

Roth contributions are not deductible

 

401(k) Retirement Plan

Salary Deferrals:

$18,000 (2015, 2016)

Catch-Up Deferral:

$6,000 for those aged 50 and older (2015, 2016)

Deferral Deadline:

December 31

Excess Deferral Correction:

April 18

Employer + Employee Contributions:

The lesser of 100% of employee compensation or $53,000 (not including catch up deferrals) (2015, 2016)

Annual Compensation Limit:

$265,000 (2015, 2016)

 

Disclosures:         

Composed Financial Management, PLLC does not provide tax advice.  The material presented above is for informational purposes only.  The information listed above is not all-inclusive or exhaustive.  There may be other deadlines that apply to you or other responsibilities you may have with various taxing authorities.  Please consult your tax adviser for more information.

None of the information or data presented herein constitutes a recommendation by Composed Financial Management, LLC (“the Firm”) or a solicitation of any offer to buy or sell any securities. Information presented is general information that does not take into account your individual circumstances, financial situation or needs, nor does it present a personalized recommendation to you. Although information has been obtained from and is based upon sources the Firm believes to be reliable, we do not guarantee its accuracy and the information may be incomplete or condensed. All expressions of opinion reflect the judgment of the authors as of the date of publication and are subject to change.  Past performance is no guarantee of future results.

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