12 Jan Are You Ready?
Well, It’s a new year and things are really heating up. Changes in the tax law and filing requirements are already in the works and could take effect as early as next year. Thankfully, filing for your 2017-year taxes will pretty much be the same as usual. However, there are a few things we think you should be aware of as you prepare for the tax filing season.
We can’t address everything you should be considering for your tax filings, that’s why we offer a free consultation with a licensed C.P.A. for free. Now would be the best time to schedule your free appointment. That being said, there are plenty of interesting tips we’d like to pass along in this edition of our newsletter, so let’s jump right in.
Updated 2018 Withholding Tables – Hot Off The Presses
Okay, this item won’t help you for last years tax season, however, we thought you might want to know what you can expect for your 2018 take home pay.
This update was released as I.R.S. Notice 1036. The good news is that employees can expect to see increases in their paychecks as early as the next few weeks (Depending on their employer’s proactivity to implementing the new schedules.) Either way, employers are required to have the new schedules implemented by February 15, 2018. Wow! That was quick. This new tax reform makes a few changes to take note of.
- To help taxpayers calculate their potential tax liability, the I.R.S. is making their withholding tax calculator available again, hopefully by the end of February.
- You can get helpful tips and answers by visiting the R.S. Government website, or you could just ask us.
Prepaid Real Property Taxes May Be Deductible
In a bold move, the I.R.S. announced that state and local real property taxes owed during 2018 but prepaid in 2017 may be deductible for the 2017 year taxes under certain situations. It’s a good idea to contact one of our C.P.A. representatives to find out if your situation qualifies.
New Standard Mileage Rates Announced
The Internal Revenue Service came out with the 2018 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable organizations and medical or moving purposes.
The cool thing is, these rates take effect as of January 1, 2018, and covers all vehicle types (cars, vans, pickups, panel trucks, etc…)
The new standard mileage rates for 2018 are:
- 54.5 cents for every mile of business travel driven, up 1 cent from the rate for 2017.
- 18 cents per mile driven for medical or moving purposes, up 1 cent from the rate for 2017.
- 14 cents per mile driven in service of charitable organizations.
I.R.S. Interest Rates Remain the Same
Traditionally these interest rates are calculated on a quarter by quarter basis, however, they will remain unchanged from the 4th quarter of 2017, which might be good news for some folks. The rates are as follows:
- 4% for overpayments, 3% for corporations
- 5% for the portion of a corporate overpayment exceeding $10,000.
- 4% for underpayments
- 6% for large corporate underpayments.
Here’s Some Additional Helpful Resources
We know what you’re thinking. “Hey, if they are in the tax preparation business, how come they are giving us free advice?” Because, we are dedicated to providing you with the lowest cost tax preparation services possible. Besides, we’re plenty busy with clients who need our help, and we’re here for you as well. So, here are a few tax tools that might be helpful as you prepare your taxes this year.
- Take Steps Now – The I.R.S. pre-planning tax service tool.
- Individual Taxpayer I.D. Page – This page is for those whose “ITIN” number may be expiring.
- Identity Theft, Fraud & Scam Help – Tools to help you if you have been the victim of a fraudulent act.
- I.R.S. Forms, Instructions & Publications – Good information to have in time of need.
- I.R.S. Tax Payment Options – Find out all the ways you can give your money to the I.R.S.
On Your Marks, Get Set, Go!
Now is the time to start organizing all those receipts, balancing your checkbooks, and making any last-minute contributions to your retirement plans. Hopefully we have provided some helpful information. With all the changes to the tax code, it is a good idea to schedule your consultation today. Our tax professionals can sort out all the confusing details and make sense of it all.
Remember, new clients can get 20% off their first tax preparation if they visit our site and subscribe to our monthly newsletter. Get your discount coupon today by clicking on the link below.