A reminder for US taxpayers to pay attention to a few noted items for filing US tax:

5. The importance of preserving tax records.
   In general, the Internal Revenue Service (IRS) recommends that the tax return and its supporting materials be kept for at least three years. If the taxpayer needs to submit a modified tax form or a problem appears, some materials should be kept for seven years. In addition, after the disposal of the property, the real estate-related information should be kept for at least seven years. Health information should be kept with the tax records. Taxpayers do not need to send this information to the IRS, but it should serve as evidence of health insurance. Taxpayers should keep records of the health insurance information provided by the employer, the premium paid, the premium paid in advance for tax deduction, and the type of insurance. After tax filing, these information should be kept for three years.


6. What should be done before December 31, 2016?
   The charitable donations made before December 31, 2016 are tax deductible. If you donate with a credit card, even if the recipient did not receive the donation at the end of 2016, the donation can still be tax deductible. Similarly, the checks of charitable donations sent by the end of 2016 are also considered effective. If the taxpayer is over 70 years and a half, it is generally required to receive a personal retirement account and a workplace retirement plan with the pension sent before December 31, 2016. Contributions for most retirement accounts should be completed by the end of 2016, but taxpayers' contributions to the Individual Retirement Accounts (IRA) can be postponed until April 18, 2017. In 2016, the maximum amount of 401(k) was USD18,000. For the traditional IRA and Ross IRA, the ceiling was USD6,500. If the taxpayer is 50 years of age or above, the maximum amount that can be put in was USD15,500.

Perhaps some readers will be puzzled, is it not too late now to talk about what should be done before December 31, 2016? But even if the details of tax filing changes year after year, large-scale general direction will not change. Familiarity with these rules will be helpful for preparing for tax filing information for the next year and the future. In the case of US citizens or permanent residents in Taiwan, the best way to keep tax records is to keep the annual Taiwan income tax returns as supporting documents. If there is any area that is not clear or controversial, we recommend you to consult with professionals at HWG.