Major changes for filing taxes in 2017

Posted at 7:35 PM, Jan 10, 2017
and last updated 2017-01-10 23:45:42-05

While President-Elect, Donald Trump promises many changes related to taxes, there are already changes written into law that will affect your returns in 2017.

The Internal Revenue Service is delaying returns for early tax filers with children. The IRS is delaying the returns until the middle to end of February, so they can make sure there's no early filing fraud.

Another major change is the increased penalty for not having health insurance. Christopher Fabian with EG Tax Service in Amherst said tax payers without insurance are looking at paying 2.5 percent of their income or $695 per person up to three people, which ever is greater.

This will also be the final year for parents of college kids to use the tuition and fees adjustment credit. That credit is set to expire after this tax season.

Fabian said the common mistake people make on their taxes is not claiming all of their earnings or deductions.

"You know people who wins at the casino, they win $800 and they got the W2G. Well, they lost a $1,000 and go well it nets off. It doesn't matter. Well, gambling winnings goes on page one of your 1040. Gambling losses goes on itemized deductions, so it does matter," Fabian said.

The tax expert said a big refund check isn't always a good thing. Many times it's because you're withholding more taxes from your paycheck than you need to.