Houston CPA firm - Specializing in Individual and Business Tax Preparation
The IRS recently announced mileage rates to be used for travel in 2018.
Here are 2017 rates for your reference as well.
Remember to properly document your mileage to receive full credit for your miles driven. We recommend using MileIQ for recording your miles. (Note that there might be additional fees involved) |
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Call Darshi Kasotia, CPA today at 832 532 3000 or Contact Us online now.
If you operate a business and engage the services of an individual (independent contractor) other than one who meets the definition of an employee, and you pay him or her $600 or more for the calendar year, you are required to issue the individual a Form 1099-MISC soon after the end of the year to avoid penalties and the prospect of losing the deduction for his or her labor and expenses in an audit.
The due date for mailing the recipient his or her copy of the 1099-MISC that reports 2017 payments is January 31, 2018. That is also the due date for filing the 1099-MISC with the IRS.
Call Darshi Kasotia, CPA today at 832 532 3000 or Contact Us online now.
On October 27, 2016, the Internal Revenue Service announced cost of living adjustments affecting dollar limitations for pension plans and other retirement-related items for tax year 2017.
| Chart of Select Limits | |||||||||
| 401k Plan Limits for Year | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 | ||
| 401k Elective Deferrals | $18,000 | $18,000 | $18,000 | $17,500 | $17,500 | $17,000 | $16,500 | ||
| Annual Defined Contribution Limit | $54,000 | $53,000 | $53,000 | $52,000 | $51,000 | $50,000 | $49,000 | ||
| Annual Compensation Limit | $270,000 | $265,000 | $265,000 | $260,000 | $255,000 | $250,000 | $245,000 | ||
| Catch-Up Contribution Limit | $6,000 | $6,000 | $6,000 | $5,500 | $5,500 | $5,500 | $5,500 | ||
| Highly Compensated Employees | $120,000 | $120,000 | $120,000 | $115,000 | $115,000 | $115,000 | $110,000 | ||
| Non-401k Related Limits | |||||||||
| 403(b)/457 Elective Deferrals | $18,000 | $18,000 | $18,000 | $17,500 | $17,500 | $17,000 | $16,500 | ||
| SIMPLE Employee Deferrals | $12,500 | $12,500 | $12,500 | $12,000 | $12,000 | $11,500 | $11,500 | ||
| SIMPLE Catch-Up Deferral | $3,000 | $3,000 | $3,000 | $2,500 | $2,500 | $2,500 | $2,500 | ||
| SEP Minimum Compensation | $600 | $600 | $600 | $550 | $550 | $550 | $550 | ||
| SEP Annual Compensation Limit | $270,000 | $265,000 | $265,000 | $260,000 | $255,000 | $250,000 | $245,000 | ||
| Social Security Wage Base | $127,200 | $118,500 | $118,500 | $117,000 | $113,700 | $110,100 | $106,800 | ||
If you’re selling your main home this summer or sometime this year, we have some helpful tax tips for you. Even if you make a profit from the sale of your home, you may not have to report it as income.
Here are some tips to keep in mind when selling your home.
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Some people are surprised to learn they’re due a large federal income tax refund when they file their taxes. Others are surprised that they owe more taxes than they expected. When this happens, it’s a good idea to check your federal tax withholding or payments. Doing so now can help avoid a tax surprise when you file your 2013 tax return next year.
Here are some tips to help you bring the tax you pay during the year closer to what you’ll actually owe.
Wages and Income Tax Withholding
New Job. Your employer will ask you to complete a Form W-4, Employee’s Withholding Allowance Certificate. Complete it accurately to figure the amount of federal income tax to withhold from your paychecks.
Life Event. Change your Form W-4 when certain life events take place. A change in marital status, birth of a child, getting or losing a job, or purchasing a home, for example, can all change the amount of taxes you owe. You can typically submit a new Form W–4 anytime.
IRS Withholding Calculator. This handy online tool will help you figure the correct amount of tax to withhold based on your situation. If a change is necessary, the tool will help you complete a new Form W-4.
Self-Employment and Other Income
Estimated tax. This is how you pay tax on income that’s not subject to withholding. Examples include income from self-employment, interest, dividends, alimony, rent and gains from the sale of assets. You also may need to pay estimated tax if the amount of income tax withheld from your wages, pension or other income is not enough. If you expect to owe a thousand dollars or more in taxes and meet other conditions, you may need to make estimated tax payments.
Form 1040-ES. Use the worksheet in Form 1040-ES, Estimated Tax for Individuals, to find out if you need to pay estimated taxes on a quarterly basis.
Change in Estimated Tax. After you make an estimated tax payment, some life events or financial changes may affect your future payments. Changes in your income, adjustments, deductions, credits or exemptions may make it necessary for you to recalculate your estimated tax.
Additional Medicare Tax. A new Additional Medicare Tax went into effect on Jan. 1, 2013. The 0.9 percent Additional Medicare Tax applies to an individual’s wages, Railroad Retirement Tax Act compensation and self-employment income that exceeds a threshold amount based on the individual’s filing status. For additional information on the Additional Medicare Tax, see our questions and answers.
Net Investment Income Tax. A new Net Investment Income Tax went into effect on Jan. 1, 2013. The 3.8 percent Net Investment Income Tax applies to individuals, estates and trusts that have certain investment income above certain threshold amounts.
IRS YouTube Videos:
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