Below are some of the highlights that may affect the preparation of your tax returns:

PERSONAL EXEMPTIONS
The Exemption deduction for Individual Filers and their dependents has been repealed.
STANDARD DEDUCTION CHANGES – Has almost doubled for 2018. 2017 2018
Single $6,350 $12,000
Married Filing Joint $12,700 $24,000
Married Filing Separate $6,350 $12,000
Head of Household $9,350 $18,000
PAYROLL TAXES
The 2018 maximum wage ceiling on which Social Security was withheld was $128,400. For 2019 the ceiling increase to $132,400.
TAX RATE BRACKETS
There are still seven rate brackets, but changes to break points and some of the percentages. The new tax brackets are 10%, 12%, 22%, 24%, 32%, 35%, and 37%. The highest bracket has reduced from 39.6%.
CHILD TAX CREDIT
 Has increased from $1,000 to $2,000 for each qualifying child younger than 17. The credit may be reduced or eliminated for higher income taxpayers.
STANDARD BUSINESS MILEAGE RATE
The rate for 2018 was 54.5 cents per mile, this has increased in 2019 to 58 cents per mile.
401(k) & 403(b)CONTRIBUTION LIMIT
In 2018 the limit was $18,500, this has increased to $19,000 for 2019. Individuals who attained 50 by the end of the tax year 2018 are allowed an additional “catch-up” contribution of $6,000.
SELF-EMPLOYED PLANS (SEP’S)
The lesser of 25% of a special computation used in determining the earned income of the self-employed individual or $55,000 for 2018 and $56,000 for 2019.
TRADITIONAL & ROTH IRA CONTRIBUTIONS
There is a $5,500 maximum annual contribution. Individuals 50 or older may contribute $6,500.
ALTERNATIVE MINIMUM TAX EXEMPTION 2016 2017 2018 2019 (Projected)
Single & Head of Household $53,900 $54,300 $70,300 $71,700
Married – Filing Jointly $83,800 $84,500 $109,400 $117,700
Married – Filing Separately $41,900 $42,250 $54,700 $55,850
LONG-TERM CAPITAL GAINS & QUALIFIED DIVIDENDS RATE
The rates have not changed for 2018. The 0% rate is for Single filers with taxable income under $38,600, and $77,200 on Joint Returns. The 20% rate for Single filers starts at $425,800 and $479,000 on Joint Returns. The 15% rate applies for filers with income between these break points.
AMERICAN OPPORTUNITY TAX CREDIT
The credit is for Higher Education Tuition and related expenses paid. The credit is the sum of 100% of first $2,000 plus 25% of the next $2,000 of qualified expenses for a total maximum credit of $2,500 per eligible student. The credit phases out at certain income levels.
EDUCATOR DEDUCTIONS
Remains the same $250 above the line deduction of any unreimbursed business expenses for classroom materials such as books, supplies, computers including related software and services or other equipment that the eligible educator uses in the classroom.
CHARITABLE DONATIONS
Record keeping requirements have been made tougher for both cash and non-cash charitable donations. You must have either: 1) a bank record, including a cancelled check, a bank or credit union statement, or a credit card statement; or 2) a receipt, letter, or written communication from the donee, indicating the donee’s name and the contribution date and amount. “Non-cash donations such as clothing and household items must be in “”good”” used condition or better.”
KIDDIE TAX
In 2018 the kiddie tax has been simplified by applying ordinary and capital gains rates applicable to trusts and estates to the net unearned income of a child. A child may earn $12,000 in 2018 and pay no tax. The amount of $2,100 of unearned income is what a child may have before the kiddie tax applies.
LIMITS ON MORTGAGE INTEREST
In 2018 acquisition indebtedness is limited to $750,000. A vacation home still qualifies, and the overall debt is limited to $750,000 for the first and second residence, assuming second residence has less than 14 rental days and personal use less than 14 days.
SALT DEDUCTION (State and Local Taxes)
Maximum itemized deduction of $10,000 in the aggregate can be claimed as an itemized deduction.

If you would like more detailed information or have any questions, please feel free to get in touch.

LET'S TALK
LET'S TALK

Below are some of the highlights that may affect the preparation of your tax returns:

PERSONAL EXEMPTIONS
Have been increased to $4,050.  The deduction will be reduced or eliminated for higher income taxpayers.
STANDARD DEDUCTION 2016 2017
Single $6,300 $6,350
Married – Joint $12,600 $12,700
Married – Separate $6,300 $6,350
Head of Household $9,300 $9,350
PAYROLL TAXES
The wage ceiling on which Social Security is taxed for 2017 is $127,200. For 2018 the ceiling increases to $128,400. Medicare tax is unlimited, but workers earning more than $200,000 (or couples earning more than $250,000) will have an additional 0.9 percent withheld.
TAX RATES
Have remained the same, ranging from a low of 10% to a high of 39.6%. If your income is more than $418,400 (single) or $470,700 (married filing jointly) your tax bracket will be 39.6 percent. If you are in the top tax bracket, you will also be subject to a capital gains rate of 20 percent as well as a 3.8 percent surcharge tax on investment income for the Affordable Care Act.
CHILD TAX CREDIT
Remains the same at $1,000 for each qualifying child younger than 17.  The deduction may be reduced or eliminated for higher income taxpayers.
STANDARD BUSINESS MILEAGE RATE
The rate for 2017 was 53.5 cents per mile. The rate for 2018 is 54.5 cents per mile.
401(k) CONTRIBUTION LIMIT
Was $18,000 for 2017. This will increase for 2018 to $18,500. Individuals who attained age 50 by the end of the tax year 2017 are allowed an additional “catch-up” contribution of $6,000 and will remain the same for 2018.
SELF-EMPLOYED PLANS (SEP’S)
The lesser of 25% of a special computation used in determining the earned income of the self-employed individual or $54,000 for 2017 and for 2018 $55,000.
TRADITIONAL & ROTH IRA CONTRIBUTIONS
The lesser of 25% of a special computation used in determining the earned income of the self-employed individual or $54,000 for 2017 and for 2018 $55,000.
ALTERNATIVE MINIMUM TAX EXEMPTION 2016 2017
Single $53,900 $54,300
Married – Joint $83,800 $84,500
Married – Separate $41,900 $42,250
NET CAPITAL GAINS & QUALIFIED DIVIDENDS RATE The long term capital gains for 2016 are as follows
Taxpayers in 10% or 15% Income Tax Bracket 0%
Taxpayers in 25%, 28%, 33% or 35% Income Tax Bracket 15%
Taxpayers in 39.6% Income Tax Bracket 20%
AMERICAN OPPORTUNITY TAX CREDIT
 Has been permanently extended. This credit is for Higher Education Tuition and related expenses paid. The credit is the sum of 100% of first $2,000 plus 25% of the next $2,000 of qualified expenses for a total maximum credit of $2,500 per eligible student. The credit amount phases out at certain income levels.
EDUCATOR DEDUCTIONS
A $250 above-the-line deduction for educator expenses to include unreimbursed expenses for books, supplies, computer equipment and supplementary materials used in the classroom.  Any additional costs can be deducted as a miscellaneous deduction if you itemize.
CHARITABLE DONATIONS
Record keeping requirements have been made tougher for both cash and non-cash charitable donations. You must have either: 1) a bank record, including a cancelled check, a bank or credit union statement, or a credit card statement; or 2) a receipt, letter, or written communication from the donee, indicating the donee’s name and the contribution date and amount. Non-cash donations such as clothing and household items must be in “good” used condition or better.
KIDDIE TAX
In 2017, if your child is under the age of 19, first $2,100 of investment income is tax free.

If you would like more detailed information or have any questions, please feel free to get in touch.

LET'S TALK
LET'S TALK

Below are some of the highlights that may affect the preparation of your tax returns:

PERSONAL EXEMPTIONS
Have been increased to $4,050. The deduction will be reduced or eliminated for higher income taxpayers.
STANDARD DEDUCTION CHANGES 2015 2016
Single $6,300 $6,300
Married – Joint $12,600 $12,600
Married – Separate $6,300 $6,300
Head of Household $9,250 $9,300
PAYROLL TAXES
The wage ceiling on which Social Security is taxed has been increased to $127,200. Medicare tax is unlimited, but workers earning more than $200,000 (or couples earning more than $250,000) will have an additional 0.9 percent withheld.
TAX RATES
Have remained the same, ranging from a low of 10% to a high of 39.6%. If your income is more than $415,050 (single) or $466,950 (married filing jointly) your tax bracket will be 39.6 percent. If you are in the top tax bracket, you will also be subject to a capital gains rate of 20 percent as well as a 3.8 percent surcharge tax on investment income for the Affordable Care Act.
CHILD TAX CREDIT
Remains the same at $1,000 for each qualifying child younger than 17.  The deduction may be reduced or eliminated for higher income taxpayers.
STANDARD BUSINESS MILEAGE RATE
The rate for 2016 was .54 cents per mile. The rate for 2017 is 53.5 cents per mile.
401(K) CONTRIBUTION LIMIT
Was $18,000 for 2016. This will remain the same for 2017. Individuals who attained age 50 by the end of the tax year 2016 are allowed an additional “catch-up” contribution of $6,000 and will remain the same for 2017.
SELF-EMPLOYED PLANS (SEP’S)
The lesser of 25% of a special computation used in determining the earned income of the self-employed individual or $53,000 for 2016 and for 2017 $54,000.
TRADITIONAL & ROTH IRA CONTRIBUTIONS
There is a $5,500 maximum annual contribution.  Individuals 50 or older may contribute $6,500.
ALTERNATIVE MINIMUM TAX EXEMPTION 2015 2016
Single $53,600 $53,900
Married – Joint $83,400 $83,800
Married – Separate $41,700 $41,900
NET CAPITAL GAINS & QUALIFIED DIVIDENDS RATE The long term capital gains for 2016 are as follows
Taxpayers in 10% or 15% Income Tax Bracket 0%
Taxpayers in 25%, 28%, 33% or 35% Income Tax Bracket 15%
Taxpayers in 39.6% Income Tax Bracket 20%
AMERICAN OPPORTUNITY TAX CREDIT
Has been permanently extended. This credit is for Higher Education Tuition and related expenses paid. The credit is the sum of 100% of first $2,000 plus 25% of the next $2,000 of qualified expenses for a total maximum credit of $2,500 per eligible student. The credit amount phases out at certain income levels.
NON-BUSINESS ENERGY PROPERTY CREDIT
A tax credit is available for the installation of exterior doors and windows, insulation, heat pumps, furnaces, central air conditioners and water heaters installed in 2016. The credit is equal to 10% of the expenditures or a maximum of a total combined credit limit of $500 for all years after 2005.
EDUCATOR DEDUCTIONS
A $250 above-the-line deduction for educator expenses to include unreimbursed expenses for books, supplies, computer equipment and supplementary materials used in the classroom.  Any additional costs can be deducted as a miscellaneous deduction if you itemize.
CHARITABLE DONATIONS
Record keeping requirements have been made tougher for both cash and non-cash charitable donations. You must have either: 1) a bank record, including a cancelled check, a bank or credit union statement, or a credit card statement; or 2) a receipt, letter, or written communication from the donee, indicating the donee’s name and the contribution date and amount. Non-cash donations such as clothing and household items must be in “good” used condition or better.
KIDDIE TAX
In 2016, if your child is under the age of 18, first $2,100 of investment income is tax free.

If you would like more detailed information or have any questions, please feel free to get in touch.

LET'S TALK
LET'S TALK

Below are some of the highlights that may affect the preparation of your tax returns:

PERSONAL EXEMPTIONS
Have been increased to $4,000.  The deduction will be reduced or eliminated for higher income taxpayers.
STANDARD DEDUCTION CHANGES 2014 2015
Single $6,200 $6,300
Married – Joint $12,400 $12,600
Married – Separate $6,200 $6,300
Head of Household $9,100 $9,250
PAYROLL TAXES
The wage ceiling on which Social Security is taxed has been increased to $118,500. Medicare tax is unlimited, but workers earning more than $200,000 (or couples earning more than $250,000) will have an additional 0.9 percent withheld.
TAX RATES
Have remained the same, ranging from a low of 10% to a high of 39.6%. If your income is more than $413,200 (single) or $464,850 (married filing jointly) your tax bracket will be 39.6 percent. If you are in the top tax bracket, you will also be subject to a capital gains rate of 20 percent as well as a 3.8 percent surcharge tax on investment income for the Affordable Care Act.
CHILD TAX CREDIT
Remains the same at $1,000 for each qualifying child younger than 17.  The deduction may be reduced or eliminated for higher income taxpayers.
STANDARD BUSINESS MILEAGE RATE
The rate for 2016 is .54 cents per mile. The rate for 2015 was 57.5 cents per mile.
401(K) CONTRIBUTION LIMIT
Was $18,000 for 2015. This will remain the same for 2016. Individuals who attained age 50 by the end of the tax year 2015 are allowed an additional “catch-up” contribution of $6,000 and will remain the same for 2016.
SELF-EMPLOYED PLANS (SEP’S)
The lesser of 25% of a special computation used in determining the earned income of the self-employed individual or $53,000 for 2015 and for 2016.
TRADITIONAL & ROTH IRA CONTRIBUTIONS
There is a $5,500 maximum annual contribution.  Individuals 50 or older may contribute $6,500.
ALTERNATIVE MINIMUM TAX EXEMPTION 2014 2015
Single $52,800 $53,600
Married – Joint $82,100 $83,400
Married – Separate $41,050 $41,700
NET CAPITAL GAINS & QUALIFIED DIVIDENDS RATE The long term capital gains for 2015 are as follows
Taxpayers in 10% or 15% Income Tax Bracket 0%
Taxpayers in 25%, 28%, 33% or 35% Income Tax Bracket 15%
Taxpayers in 39.6% Income Tax Bracket 20%
AMERICAN OPPORTUNITY TAX CREDIT
Has been permanently extended. This credit is for Higher Education Tuition and related expenses paid. The credit is the sum of 100% of first $2,000 plus 25% of the next $2,000 of qualified expenses for a total maximum credit of $2,500 per eligible student. The credit amount phases out at certain income levels.
NON-BUSINESS ENERGY PROPERTY CREDIT
A tax credit is available for the installation of exterior doors and windows, insulation, heat pumps, furnaces, central air conditioners and water heaters installed in 2015.  The credit is equal to 10% of the expenditures or a maximum of a total combined credit limit of $500 for all years after 2005.
EDUCATOR DEDUCTIONS
A $250 above-the-line deduction for educator expenses to include unreimbursed expenses for books, supplies, computer equipment and supplementary materials used in the classroom.  Any additional costs can be deducted as a miscellaneous deduction if you itemize.
CHARITABLE DONATIONS
Record keeping requirements have been made tougher for both cash and non-cash charitable donations. You must have either: 1) a bank record, including a cancelled check, a bank or credit union statement, or a credit card statement; or 2) a receipt, letter, or written communication from the donee, indicating the donee’s name and the contribution date and amount. Non-cash donations such as clothing and household items must be in “good” used condition or better.
KIDDIE TAX
In 2015, if your child is under the age of 18, first $2,100 of investment income is tax free.

If you would like more detailed information or have any questions, please feel free to get in touch.

LET'S TALK
LET'S TALK

Below are some of the highlights that may affect the preparation of your tax returns:

PERSONAL EXEMPTIONS
Have been increased to $3,950.  The deduction will be reduced or eliminated for higher income taxpayers.
STANDARD DEDUCTION CHANGES 2013 2014
Single $6,100 $6,200
Married – Joint $12,200 $12,400
Married – Separate $6,100 $6,200
Head of Household $8,950 $9,100
PAYROLL TAXES
The wage ceiling on which Social Security is taxed has been increased to $117,000. Medicare tax is unlimited, but workers earning more than $200,000 (or couples earning more than $250,000) will have an additional 0.9 percent withheld.
TAX RATES
Have remained the same, ranging from a low of 10% to a high of 39.6%. If your income is more than $406,750 (single) or $457,600 (married filing jointly) your tax bracket will be 39.6 percent. If you are in the top tax bracket, you will also be subject to a capital gains rate of 20 percent as well as a 3.8 percent surcharge tax on investment income for the Affordable Care Act.
CHILD TAX CREDIT
Remains the same at $1,000 for each qualifying child younger than 17.  The deduction may be reduced or eliminated for higher income taxpayers.
STANDARD BUSINESS MILEAGE RATE
The rate for 2015 is .57.5 cents per mile. The rate for 2014 was 56 cents per mile.
401(K) CONTRIBUTION LIMIT
Was $17,500 for 2014. This will increase to $18,000 for 2015. Individuals who attained age 50 by the end of the tax year 2014 are allowed an additional “catch-up” contribution of $5,500 and will increase to $6,000 for 2015.
SELF-EMPLOYED PLANS (SEP’S)
The lesser of 25% of a special computation used in determining the earned income of the self-employed individual or $52,000 for 2014 and will increase to $53,000 for 2015.
TRADITIONAL & ROTH IRA CONTRIBUTIONS
There is a $5,500 maximum annual contribution.  Individuals 50 or older may contribute $6,500.
ALTERNATIVE MINIMUM TAX EXEMPTION 2013 2014
Single $51,900 $52,800
Married – Joint $80,800 $82,100
Married – Separate $40,400 $41,050
NET CAPITAL GAINS & QUALIFIED DIVIDENDS RATE The long term capital gains for 2014 are as follows
Taxpayers in 10% or 15% Income Tax Bracket 0%
Taxpayers in 25%, 28%, 33% or 35% Income Tax Bracket 15%
Taxpayers in 39.6% Income Tax Bracket 20%
ADOPTION EXPENSE CREDIT
An income tax credit for qualified adoption expenses of $13,190.  This is subject to AGI limitations.
NON-BUSINESS ENERGY PROPERTY CREDIT
A tax credit is available for the installation of exterior doors and windows, insulation, heat pumps, furnaces, central air conditioners and water heaters installed in 2014.  The credit is equal to 10% of the expenditures or a maximum of a total combined credit limit of $500 for all years after 2005.
EDUCATOR DEDUCTIONS
A $250 above-the-line deduction for educator expenses to include unreimbursed expenses for books, supplies, computer equipment and supplementary materials used in the classroom.  Any additional costs can be deducted as a miscellaneous deduction if you itemize.
CHARITABLE DONATIONS
Recordkeeping requirements have been made tougher for both cash and non-cash charitable donations.  Must have a dated receipt from the charity, cancelled check or credit card statement to prove the donation.  Non-cash donations such as clothing and household items must be in “good” used condition or better.
KIDDIE TAX
In 2014, if your child is under the age of 18, first $2,000 of investment income is tax free.

If you would like more detailed information or have any questions, please feel free to get in touch.

LET'S TALK
LET'S TALK

Below are some of the highlights that may affect the preparation of your tax returns:

PERSONAL EXEMPTIONS
Have been increased to $3,900.  The deduction will not be reduced or eliminated for higher income taxpayers.
STANDARD DEDUCTION CHANGES 2012 2013
Single $5,950 $6,100
Married – Joint $11,900 $12,200
Married – Separate $5,950 $6,100
Head of Household $8,700 $8,950
PAYROLL TAXES
The wage ceiling on which Social Security is taxed has been increased to $113,700. Medicare tax is unlimited, but workers earning more than $200,000 (or couples earning more than $250,000) will have an additional 0.9 percent withheld.
TAX RATES
Have increased, ranging from a low of 10% to a high of 39.6%. If your income is more than $400,000 (single) or $450,000 (married filing jointly) your tax bracket will increase from 35 to 39.6 percent. If you are in the new high tax bracket, you will also be subject to a capital gains rate of 20 percent as well as a 3.8 percent surcharge tax on investment income for the Affordable Care Act.
CHILD TAX CREDIT
Remains the same at $1,000 for each qualifying child younger than 17.  The deduction may be reduced or eliminated for higher income taxpayers.
STANDARD BUSINESS MILEAGE RATE
The rate for 2014 is .56 cents per mile. The rate for 2013 was 56.5 cents per mile.
401(K) CONTRIBUTION LIMIT
Was $17,500 for 2013. This will be the same for 2014. Individuals who attained age 50 by the end of the tax year 2013 are allowed an additional “catch-up” contribution of $5,500 and the same for 2014.
SELF-EMPLOYED PLANS (SEP’S)
The lesser of 25% of a special computation used in determining the earned income of the self-employed individual or $51,000 for 2013 and will increase to $52,000 for 2014.
TRADITIONAL & ROTH IRA CONTRIBUTIONS
There is a $5,500 maximum annual contribution.  Individuals 50 or older may contribute $6,500.
ALTERNATIVE MINIMUM TAX EXEMPTION 2012 2013
Single $50,600 $51,900
Married – Joint $78,750 $80,800
Married – Separate $39,375 $40,400
NET CAPITAL GAINS & QUALIFIED DIVIDENDS RATE The long term capital gains for 2013 are as follows
Taxpayers in 10% or 15% Income Tax Bracket 0%
Taxpayers in 25%, 28%, 33% or 35% Income Tax Bracket 15%
Taxpayers in 39.6% Income Tax Bracket 20%
ADOPTION EXPENSE CREDIT
An income tax credit for qualified adoption expenses of $12,970.  This is subject to AGI limitations.
NON-BUSINESS ENERGY PROPERTY CREDIT
A tax credit is available for the installation of exterior doors and windows, insulation, heat pumps, furnaces, central air conditioners and water heaters installed in 2013.  The credit is equal to 10% of the expenditures or a maximum of a total combined credit limit of $500 for all years after 2005.
EDUCATOR DEDUCTIONS
A $250 above-the-line deduction for educator expenses to include unreimbursed expenses for books, supplies, computer equipment and supplementary materials used in the classroom.  Any additional costs can be deducted as a miscellaneous deduction if you itemize.
CHARITABLE DONATIONS
Recordkeeping requirements have been made tougher for both cash and non-cash charitable donations.  Must have a dated receipt from the charity, cancelled check or credit card statement to prove the donation.  Non-cash donations such as clothing and household items must be in “good” used condition or better.
KIDDIE TAX
In 2013, if your child is under the age of 18, first $1,000 of investment income is tax free, the next $1,000 is taxed at the child’s rate.  Amounts over $2,000 of investment income will be taxed at the parents’ highest rate.

If you would like more detailed information or have any questions, please feel free to get in touch.

LET'S TALK
LET'S TALK

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