Ask a CPA

If you do not have health insurance coverage for all 12 months in 2016 you may have to make a penalty payment with your tax return unless certain other conditions exist.
Individuals for whom coverage is too expensive are exempt from the penalty payment. Also individuals may qualify for a coverage exemption. A coverage exemption can be granted from your marketplace or you may qualify for a coverage exemption based on your household income or gross income being below certain threshold amounts.
Individuals may also qualify for certain hardship coverage exemptions based on their family circumstances. The Shared Responsibility Penalty Payment will be reported on Form 1040, line 61. The coverage exemptions being claimed are reported on new IRS Form 8965.

If you or a family member enrolled in health insurance coverage through a health insurance marketplace, the marketplace must issue a Form 1095-A.
This form provides the required information on a monthly or annual basis to complete IRS Form 8962.
Form 8962 is used to calculate a Premium Tax Credit or a Repayment on your current year's tax return.
The marketplace has also reported this information to the IRS.

The limit on annual contributions to an Individual Retirement Arrangement (IRA) remains unchanged at $5,500. The additional catch-up contribution limit for individuals aged 50 and over is $1,000 for a maximum amount of $6,500.

Effective January 1, 2016, the limitation on the annual benefit under a defined benefit plan under Section 415(b)(1)(A) remains at $210,000.
For a participant who separated from service before January 1, 2016, the limitation for defined benefit plans under Section 415(b)(1)(B) is computed by multiplying the participant's compensation limitation, as adjusted through 2015, by 1.0011.

The adjusted gross income limitation under Section 25B(b)(1)(A) for determining the retirement savings contribution credit for married taxpayers filing a joint return is increased from $36,000 to $36,500; the limitation under Section 25B(b)(1)(B) is increased from $39,000 to $39,500; and the limitation under Sections 25B(b)(1)(C) and 25B(b)(1)(D) is increased from $60,000 to $61,000.

In 2016, the dollar amount under Section 430(c)(7)(D)(i)(II) used to determine excess employee compensation with respect to a single-employer defined benefit pension plan for which the special election under Section 430(c)(2)(D) has been made is increased from $1,101.000 to $1,106,000..

The adjusted gross income limitation under Section 25B(b)(1)(A) for determining the retirement savings contribution credit for taxpayers filing as head of household is increased from $27,000 to $27,375; the limitation under Section 25B(b)(1)(B) is increased from $29,250 to $29,625; and the limitation under Sections 25B(b)(1)(C) and 25B(b)(1)(D) is increased from $45,000 to $45,750.

In 2016, The limitation under Section 408(p)(2)(E) regarding SIMPLE retirement accounts remains at $12,500.
In 2015,the limitation under Section 408(p)(2)(E) regarding SIMPLE retirement accounts increased from $12,000 to $12,500.

Employers can contribute up to a quarter of the salaries that each employee earns (25%)up to an annual maximum limit. For 2017, that maximum will be $54,000, up $1,000 from its 2016 level. That's the first rise in the SEP IRA limit since 2015,
For self-employed. the 25% refers to the self-employed worker's "net earnings" from the business. The net result of the math is that the 25% limitation on "net earnings" works out to 20% of your adjusted profit after the self-employment tax adjustment

In 2016, the AGI phase-out range for taxpayers making contributions to a Roth IRA is $184,000 to $194,000 for married couples filing jointly, up from $183,000 to $193,000 in 2015.
For singles and heads of household, the income phase-out range is $117,000 to $132,000, up from $116,000 to $131,000.
For a married individual filing a separate return, the phase-out range is not subject to an annual cost-of-living adjustment and remains $0 to $10,000.
In 2015, the AGI phase-out range for taxpayers making contributions to a Roth IRA is $183,000 to $193,000 for married couples filing jointly, up from $181,000 to $191,000 in 2014.
For singles and heads of household, the income phase-out range is $116,000 to $131,000, up from $114,000 to $129,000.
For a married individual filing a separate return, the phase-out range is not subject to an annual cost-of-living adjustment and remains $0 to $10,000.