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United States Tax Changes for 2015

A change to the Child Tax Credit rules reduces the additional amount taxpayers can claim if they exclude foreign income. Taxpayers should be careful when withdrawing IRA funds not to run afoul of a new one-rollover-per-year limit. Adapted from IRS Publication 17:

Filing Due Date Extended
The due date for filing your individual tax return is April 18, 2016 (instead of April 15) because of the Emancipation Day holiday in the District of Columbia – even if you do not live in the District of Columbia. If you live in Maine or Massachusetts, you have until April 19, 2016 because of the Patriots' Day holiday in those states.

No Additional Child Tax Credit for Foreign Income Excluders
You can no longer claim the additional child tax credit if you file Form 2555 Foreign Earned Income, or Form 2555-EZ Foreign Earned Income Exclusion.

Achieving a Better Life Experience (ABLE) Account
A new type of savings account for individuals with disabilities and their families. You can contribute up to $14,000 for 2015. Contributions are not deductible on your tax return. Distributions are tax-free if used to pay qualified disability expenses of the beneficiary. See Publication 907 for more information.

New One-Rollover-Per-Year Limit for IRAs
Starting in 2015, you can make only one rollover from one IRA to another (or the same) IRA in any 1-year period regardless of the number of IRAs you own. However, you can continue to make unlimited trustee-to-trustee transfers between IRAs because this type of transfer is not considered a rollover. Also, there is no limit to the number of rollovers from a traditional IRA to a Roth IRA (also known as conversions). See Chapter 17 of Publication 17 for more information.

Health Coverage Reporting
If you or someone in your family had health coverage in 2015, the provider of that coverage is required to send Form 1095-A, 1095-B, or 1095-C listing individuals in your family who were enrolled in the coverage and showing their months of coverage. This information is used to complete your tax return.

Employer Coverage Reporting
If you or someone in your family was an employee in 2015, the employer may have sent you Form 1095-C. Part II of Form 1095-C will show whether your employer offered health insurance coverage and information about the offer. If you purchased health insurance coverage for 2015 through the Health Insurance Marketplace and wish to claim the premium tax credit, this information will help you see if you are eligible for the credit. If you do not wish to claim the premium tax credit for 2015, you do not need the information in Part II. Form 1095-C may include information in Part III if you, or others in your family, enrolled in an employer's health plan. See Chapter 37 of Publication 17 for more information.

Health Care Individual Responsibility Payment Increased
If you or someone in your household didn't have qualifying health care coverage or qualify for a coverage exemption for one or more months of 2015, the amount of your shared responsibility payment may be much higher this year than it was last year. Like last year, you must do one of the following:

See the Instructions for Form 8965 for more information.

Premium Tax Credit Advance Payment Reconciliation
If you or a family member enrolled in health insurance through the Marketplace and advance payments of the premium tax credit were made to your insurance company to reduce your monthly premium payment, attach Form 8962 to your return to reconcile (compare) the advance payments with your premium tax credit for the year, which you figure on Form 8962. The Marketplace is required to send Form 1095-A listing the advance payments and other information you need to figure your premium tax credit. See Chapter 37 of Publication 17 for more information.

Expired Tax Benefits
Certain tax benefits expired at the end of 2014, including:

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