American Opportunity Tax Credit

The American Recovery and Reinvestment Act of 2009 created a $2,500 higher education tax credit that is available for the first four years of college. The credit is based on 100% of the first $2,000 of tuition and related expenses (including books) paid during the tax year and 25% of the next $2,000 of tuition […]

Retirement Contributions

The table below are the retirement contribution limits for 2020 and 2019.  Individuals have until the due date of their tax return (April 15, 2020 for 2019 Individual Income Tax Returns) for certain retirement plans.  In addition, certain individuals may qualify for the retirement savers tax credit for their contributions.  Additional catch up contributions may […]

Minnesota Section 179 (Depreciation)

Minnesota limits Section 179 to $25,000 with an investment limit of $200,000. Minnesota allows taxpayers to claim the full bonus amount, but it’s apportioned over a six-year period. Taxpayers get 20% of the bonus depreciation, in the year the asset is placed in service. The other 80% must be added back, which is recovered when […]

2020 HSA Contributions

Health Savings Account (HSA) contribution limitations for 2020 are listed below.  Contributions to a HSA are tax deductible or pre-tax as a payroll deduction.  Funds from an HSA account can be used to offset deductibles, copays, and other qualified medical expenses.  Excess contributions are not deductible and are subject to penalty unless the excess contributions […]

Kiddie Tax

Children who have investment income greater than $2,600 may be subject to tax. The next unearned income is taxed under the same rates and brackets as trusts and estates. This tax has been expanded in a very complex manner to potentially apply children under age 24 as of year-end. This extended version of the kiddie […]

Standard Deduction

The table below summarizes the standard deduction for 2019:   Filing Status Standard Deduction Additional for elderly and/or blind Single $12,200 $1,650 Head of Household $18,350 $1,650 Married Filing Joint $24,400 $1,300 Married Filing Separate $12,200 $1,300  

2018 Standard Mileage Rate

Beginning on January 1, 2018, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be: 58 cents per mile for business miles driven, up from 54.5 cents for 2018 20 cents per mile driven for medical or moving purposes, up from 18 cents for 2017 14 cents […]

HSA Limitations

Health Savings Account (HSA) contribution limitations for 2017 and 2018 are listed below.  Contributions to a HSA are tax deductible or pre-tax as a payroll deduction.  Funds from an HSA account can be used to offset deductibles, copays, and other medical expenses.  For more information visit the IRS website to review Publication 969. H.S.A. CONTRIBUTIONS 2017 […]

Retirement Contributions for 2017 and 2018

The table below are the retirement contribution limits for 2017 and 2018.  Individuals have until the due date of their tax return (April 17, 2018 for 2017 Individual Income Tax Returns) for certain retirement plans.  In addition, certain individuals may qualify for the retirement savers tax credit for their contributions.  Additional catch up contributions may […]

Minnesota minimum wage set to increase January 1, 2018

The minimum wage for Minnesota will increase for inflation January 1, 2018.  The new minimum wage rate for large employers will increase to $9.65 per hour (from $9.50 currently) and small employers will increase to $7.87 per hour (from $7.75 currently).  PROVISIONS Thru 12/31/2017 Effective 1/1/2018 Larger Employer $9.50 $9.65 Small Employer $7.75 $7.87 90 […]