​For families with children and aging parents, it’s important to make sure everyone guards their personal information online and at home.
It may be time for “the conversation.”
The IRS, state revenue departments and the tax industry have teamed up to combat identity theft in the tax arena. Our theme: Taxes. Security. Together. Working in partnership with you, we can make a difference.
Especially in families that use the same computer, students should be warned against turning off any security software in use or opening any suspicious emails. They should be instructed to never click on embedded links or download attachments of emails from unknown sources.
Identity thieves are just one of many predators plying the Internet. And, actions by one computer user could infect the machine for all users. That’s a concern when dealing with personal financial details or tax information.
Kids should be warned against oversharing personal information on social media. But oversharing about home addresses, a new family car or a parent’s new job gives identity thieves a window into an extra bit of information they need to impersonate you.
Aging parents also are prime targets for identity thieves. If they are browsing the Internet, they made need to the same conversation about online security, avoiding spam email schemes and oversharing on social media.
They may also need assistance for someone to routinely review charges to their credit cards, withdrawals from their financial accounts. Unused credit cards should be canceled. An annual review should be made of their credit reports at annualcreditreport.com to ensure no new accounts are being opened by thieves, and reviewing the Social Security Administration account to ensure no excessive income is accruing to their account.
Seniors also are especially vulnerable to scam calls and pressure from fraudsters posing as legitimate organizations, including the Internal Revenue Service, and demanding payment for debts not owed. The IRS will never make threats of lawsuit or jail or demand that a certain payment method, such as a debit card, be made.
Fraudsters will try to trick seniors, telling them they have won a grand prize in a contest or that a relative needs money – anything to persuade a person to give up personal information such as their Social Security number or financial account information.
Some simple steps – and a conversation – can help the young and old avoid identity theft schemes and scammers.
To learn additional steps you can take to protect your personal and financial data, visit Taxes. Security. Together. You also can read Publication 4524, Security Awareness for Taxpayers.
Each and every taxpayer has a set of fundamental rights they should be aware of when dealing with the IRS. These are your Taxpayer Bill of Rights. Explore your rights and our obligations to protect them on IRS.gov.

Beginning in 2016, providers of minimum essential coverage must report certain information to the IRS and to covered individuals about the individual’s health coverage in 2015.
Taxpayers will use this information, which will be provided on Form 1095-B, Health Coverage Information Return or Form 1095-C, Employer-Provided Health Insurance Offer and Coverage, when they file their tax returns to verify the months that they had minimum essential coverage and satisfied the individual shared responsibility provision.  The IRS will use the information on the statements to verify the months of the individual’s coverage. 
Employers that sponsor self-insured group health plans are subject to information reporting requirements, with respect to the self-insured group health plan coverage. This means employers of any workforce size that sponsor a self-insured group health plan must comply with these information reporting requirements.  An employer that is an applicable large employer must use Form 1094-C, Transmittal of Employer-Provided Health Insurance Offer and Coverage Information Returns, and Form 1095-C to report information for employees who enrolled in the employer-sponsored self-insured health coverage.  An employer that is not an applicable large employer should not file Forms 1094-C and 1095-C, but should instead file Forms 1094-B and 1095-B to report information for employees who enrolled in the employer-sponsored self-insured health coverage.  The deadlines for reporting about 2015 coverage are the same as those provided above: February 29, 2016 for filing this information with the IRS – or March 31, 2016 if filing el ectronically – and February 1, 2016 for sending the form to the employee. 
Other providers of minimum essential coverage will file Form 1094-B, Transmittal of Health Coverage Information Returns, and Form 1095-B, Health Coverage Information Return, with the IRS.  For entities that provided minimum essential coverage in 2015, the deadline is February 29, 2016 – or March 31, 2016 if filing electronically.  The Form 1095-B must contain the name and taxpayer identification numbers for each covered individual.  It must also include the months that each covered individual was enrolled in coverage and entitled to receive benefits for at least one day of that month. 
Coverage providers also must send the Form 1095-B to the person identified as the responsible individual on the form. The responsible individual generally is the person who enrolls one or more individuals, which may include him or herself, in minimum essential coverage. For 2015 coverage, the deadline for providing this form to individuals is February 1, 2016.

​WASHINGTON — The Internal Revenue Service today issued the 2016 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.
Beginning on Jan. 1, 2016, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:

• 54 cents per mile for business miles driven, down from 57.5 cents for 2015
• 19 cents per mile driven for medical or moving purposes, down from 23 cents for 2015
• 14 cents per mile driven in service of charitable organizations

The business mileage rate decreased 3.5 cents per mile and the medical, and moving expense rates decrease 4 cents per mile from the 2015 rates. The charitable rate is based on statute.
The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile. The rate for medical and moving purposes is based on the variable costs.
Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.
A taxpayer may not use the business standard mileage rate for a vehicle after using any depreciation method under the Modified Accelerated Cost Recovery System (MACRS) or after claiming a Section 179 deduction for that vehicle. In addition, the business standard mileage rate cannot be used for more than four vehicles used simultaneously.
These and other requirements for a taxpayer to use a standard mileage rate to calculate the amount of a deductible business, moving, medical or charitable expense are in Rev. Proc. 2010-51.  Notice 2016-01 contains the standard mileage rates, the amount a taxpayer must use in calculating reductions to basis for depreciation taken under the business standard mileage rate, and the maximum standard automobile cost that a taxpayer may use in computing the allowance under a fixed and variable rate plan. 

Rap artist Dr. Dre once said, "The only two things that scare me are God and the IRS." Yes, preparing and paying your income tax can be a scary proposition, and December is the month when many investors start to fret about their taxes. You should follow the letter of the law, but you shouldn't overpay the IRS, either.

Fact is, taxes make it harder for you to reach your financial goals, by steadily eroding your income and investment earnings. As part of your long-term strategy to build up your net worth, you should do everything you can to legally minimize the taxes you pay.

That means you shouldn't let the deductions and credits you deserve slip through the cracks. It's hard to believe that while many folks love to complain about taxes, those same people may be failing to take advantage of the many legal tax breaks available to them. Come tax time, don't needlessly cheat yourself.

Maintaining tax-smart records is always a good idea. Keeping track of your deductible expenses will save you from a world of pain if the IRS decides to audit you. Nowhere is incomplete record keeping more deadly than in an audit because without documentation, any of these deductions are likely to be disavowed by the IRS in an audit. That means, when applicable, you should pay by check and credit card, or insist on cash receipts.

I recently spoke with a few accountants, who told me that the following tax deductions and credits are the most commonly overlooked by their clients:

1) Reinvested dividends.

If you're set up to have mutual fund dividends automatically plowed into buying more shares, don't forget that each reinvestment boosts your tax basis in the fund. That, in turn, lowers the taxable capital gain (or increases the tax-saving loss) when you redeem shares. Neglecting to factor reinvested dividends into your basis results in double taxation of the dividends, once in the year when they were paid to you and reinvested, and afterwards when they're included in the sales proceeds.

2) Job-seeking costs.

The unemployment rate in the U.S. is now at a relatively low 5%, but that figure masks "underemployment." Millions of people are still looking for work, perhaps you're one of them. You can deduct several aspects of any job hunt, including transportation expenses, food and lodging, employment agency fees, costs of printing a resume, etc.

3) Deduction of Medicare expenses for the self-employed.

The rise of home-based businesses is a huge but underrated trend that's transforming the U.S. economy. Many factors are fueling this "megatrend," including the flexibility of the Internet, the emergence of new technological tools, the nonconformism of Millennials, and the corporate downsizing of baby boomers who aren't ready to go out to pasture. This is the new face of retirement in America.

It all adds up to a big paradigm shift. People who run their own businesses after qualifying for Medicare can deduct the premiums they pay for Medicare Part B and Medicare Part D, in addition to the expense of supplemental Medicare policies or the cost of a Medicare Advantage plan.

4) Child-care credit.

You can qualify for a tax credit worth between 20% and 35% of what you pay for child care while you work. A "credit" is considerably more beneficial than a deduction, because it lowers your tax bill dollar for dollar. So ignoring this credit is even worse than missing a deduction that simply lowers the amount of income that's subject to tax.

5) Mortgage refinancing points.
When you purchase a house, you can deduct the points paid to obtain your mortgage. When you refinance, you must deduct the points on the new loan over the life of the loan. You can deduct 1/30th of the points a year if it's a 30-year mortgage.
6) Airline baggage fees.
Yep, you read right: This is your chance for revenge against airlines that are socking you with ever-rising fees. If you're self-employed and traveling on business, add those cursed fees to your deductible travel expenses.
7) Legal fees paid to obtain alimony.
About one in every two marriages ends in divorce. Because alimony is taxable income, you can deduct the portion of the lawyer's fee that is attributable to designating the amount. You can also deduct the portion of the fee that is attributable to tax advice.
​8) State sales and income taxes.
Many filers neglect to include state sales and income taxes paid as deductions. If you live in a state without an income tax, adding up all the tax you've paid on personal and household items can save you a lot of money.
9) Home remodeling.
As underscored by the rising fortunes of home improvement giant Home Depot, the housing rebound is fueling a remodeling boom. If you remodeled your existing home, be sure to deduct the state sales tax for building materials if you're itemizing.

10) Military travel.
If you belong to the National Guard or are a military reservist, portions of your travel expenses for attending meetings or drills more than 100 miles from home and overnight stays are deductible. You're doing your duty for Uncle Sam; this is your chance to get something back.