Monday – Friday 9am to 5pm
Begining February 3rd – Saturday 1am to 2pm for drop off and pick up only
Closed – Sunday
Scams and Fraud
There are so many fraudulent scenarios out there you should suspect everything. These things come in the form of phone calls, emails, embedded links in an email.Contact us directly if you have questions or want to verify.
2018 will be an interesting year. There are many changes. We know what they are and will try to inform you individually how the changes will affect your taxes and money.
Most 2017 tax provisions remain similar to 2016 as they were extended.
Any business that is a Corporation, Sub-S Corporation, LLC, or Partnership need to renew their annual report at www.sunbiz.org. You will get no notification by mail from the Florida Division of Corporations, only email. This must be done prior to May 1st each year. This is NOT part of your tax return preparation. The penalty for filing late starts at $400 and can go to $600 per year.
Watch out for scams. If you received something by mail, it is probably a scam. Call our office if you need to verify.
IRS is reviewing personal tax returns using mail-in audits. They request your information by mail. Note that there are several fraud scams out there. IRS will never call you and you should check with us for EVERY contact you receive from IRS for authenticity.
The Affordable Care Act (OBAMACARE):
The Affordable Care Act (OBAMACARE) is still effective for 2017 and 2018. This law is so complicated we can not offer any general information that would be accurate. This requires planning on a client by client level. Even though the government is working to change this law we do not know when any effective dates of change would be. For more information about your coverage options, financial assistance and to view the plans available to you or your family, visit the Marketplace at www.HealthCare.gov
Income tax rates are 0%, 10%, 15%, 25%, 28%, and 33%. The 35% tax bracket continues to apply for some taxpayers. Taxpayers above certain income thresholds are subject to the 39.6% tax bracket. All tax brackets will be adjusted each year for inflation.
Child Tax Credit
It is $1,000 per qualifying child. Phase out limits still apply.
Child and Dependent Care Expenses
The tax credit for child and dependent care expenses ranges from 20% to 35% of the smallest of:
- $3,000 ($6,000 for two or more qualifying persons).
- Qualified expenses incurred and paid.
- The taxpayer’s earned income.
- The spouse’s earned income.
The $3,000 and $6,000 expense limit was scheduled to be reduced to $2400 and $4,800 and the 35% maximum credit is permanent.
Sales Tax Deduction
Taxpayers can elect to deduct either state and local sales taxes, or state and local income taxes as itemized deductions, but not both. If the taxpayer elected to deduct sales tax, the taxpayer could either add actual taxes paid on purchases from receipts, invoices, etc., or use the amount from the optional state sales tax tables. The taxpayer can also add to the table amount sales taxes paid on motor vehicles, boats, homes, and materials used to build a home.
American Opportunity Credit
The American Opportunity Credit is a credit for college tuition of 100% of the first $2,000 of qualified education expenses and 25% of the next $2,000 of qualified expenses, for a total credit of $2,500. The credit is available for the first four years of education. Course materials, including books, computers, calculators, etc. REQUIRED for enrollment or attendance were also considered qualified expenses. The credit and AGI phaseouts are not adjusted annually for inflation.
Alternative Minimum Tax (AMT)AMT is still here…
Capital Gain Rates
Long Term Capital Gains still have a reduced rate based on your tax bracket.
- The standard business mileage rate for 2018 is 54.5 cents per mile, for 2017 it is 53.5 cents per mile
- The moving and medical rates are 17 cents per mile for 2017 and 18 cpm for 2018
- The charitable mileage rate remains at 14 cents per mile
Affordable Care Act Tax Provisions for Employers
The Affordable Care Act (OBAMACARE) is still effective for 2017 and 2018. This law is so complicated we can not offer any general information that would be accurate. This requires planning on a client by client level. even though President Trump is working to change this law we do not know when any effective dates of change would be.
Gift and Estate Tax Gifts of up to $15,000 per year, per donee may be made without filing a gift tax return in 2018. Prior years limit was $14,000.
The estate tax exclusion amount is $10 million begining in 2018 adjusted annually for inflation. Prior amount was $5,490,000.
These new thresholds change the amounts most people have to worry about, but estate planning is still very important.
Affordable Care Act Tax Provisions for Individuals and Families and The Premium Tax Credit
Still here…all of this is custom to your situation. This is a planning event. 2017 may bring major changes that are unknown at this time.
For more information about your coverage options, financial assistance and to view the plans available to you or your family, visit the Marketplace at www.HealthCare.gov
The $1000 Child Tax Credit for each child. For 2018 this amount is $2,000
The $250 educator expense for primary and secondary teachers has been extended permanently and indexed for inflation.
The enhanced Earned Income Credit amounts have been extended permanently.
The American Opportunity Credit has been extended permanently.
No adjustment to income for tuition and fees in 2017.
The State and local general sales taxes on Schedule A is good for 2017, limit to $10,000 for 2018.
The deduction for mortgage insurance premiums is no more. Expired in 2016.
Tax Free distributions from IRAs to charitable organizations has been extended permanently. Must be age 70.5, direct from IRA, qualified charity.
Other important points of interest:
- Traditional & Roth IRA contribution limit for 2018 and 2017 is $5,500 with a $1000 catch up contribution for individuals age 50+
- SEP IRA contribution limit in 2017 and 2018 for employees is 25% of wages up to $54,000 and 20% of net SE income after 1/2 SE deduction, up to $54,000.
- The standard daily per diem rates are $51 per day begining 10/1/2015.
- The threshold for medical expense deductions on schedule A is 7.5% of Adjusted Gross Income effective for 2017 and 2018. The threshold for everyone of any age increases to 10% begining in 2019 as part of the Affordable Care Act.