CPA Firm in Santa Rosa and Sonoma County: Navigating Tax Changes for 2016
Taxes are a constant in this world. From the occasional taxes levied in ancient Greece to the complicated tax code of modern day America, they’ve been debated and tweaked, and they’ll continue to be debated and tweaked. As a CPA firm in Santa Rosa and Sonoma County, SCA keeps tabs on changes the IRS makes so that helping you file your personal or business taxes will be smooth and easy.
Tax Changes Then and Now
Americans have a history of balking at taxes. One of the first things we learn about American history is the Boston Tea Party and the Revolutionary War. No taxation without representation! Did you know that our first official income tax wasn’t collected until about a hundred years later when Lincoln and Congress needed funds for the Civil War? That was repealed after 10 years and it wasn’t until 40 years later in 1913 that we had an income tax again, this time thanks to the 16th amendment.
You think taxes are high now? Did you know that during the first world war the highest income tax rate was 77%? Rates have fluctuated, and the way taxes are paid have changed with the times.
For 2016, over 50 inflation adjustments have been made. These include tax rates, deductions, limitations for itemized deductions, and maximum Earned Income Credit amount. An example of this is that in 2015, single taxpayers were taxed at the 39.6% rate on income over $413,200, and in 2016 they won’t be taxed at this rate until $415,050.
The IRS also makes changes that affect how you should plan for retirement and changes that affect business owners, which include figures for the Affordable Care Act and tax extenders.
Sonoma County residents and business owners can find a CPA firm in Santa Rosa or Sonoma County to help them navigate the tax changes for 2016.
Susan C. Adamson is from SCA, a CPA firm in Santa Rosa, Sonoma County. CONTACT US or call (707) 799-2705 to make an appointment with her for your tax, accounting, or business planning needs.