The table below are the retirement contribution limits for 2018 and 2019.  Individuals have until the due date of their tax return (April 15, 2019 for 2018 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 […]

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Minnesota minimum wage to increase 1/1/2019

The minimum wage for Minnesota will increase for inflation January 1, 2019.  The new minimum wage rate for large employers will increase to $9.86 per hour (from $9.65 currently) and small employers will increase to $8.04 per hour (from $7.87 currently).  PROVISIONS Thru 12/31/2018 Effective 1/1/2019 Larger Employer $9.65 $9.86 Small Employer $7.87 $8.04 90 […]

2019 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 […]

When Does A Dependent Have To File A Return

A dependent has to file a return if the dependent has: Earned income only and the total is more than $12,000. Unearned income only (i.e. income which is not compensation for service) and the total is more than $1,050. Both earned and unearned income and the unearned income is more than $350 or the total […]

Child Tax Credit

In 2018, the credit for each child under the age of 17 is $2,000. For taxpayers with income above $200,000 ($400,000 married filing joint), the credit is phased out by $50 for each $1,000 of adjusted gross income above the threshold amount. For taxpayers whose tax liability is not large enough to fully utilize the […]

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 […]

Lifetime Learning Credit

If a taxpayer, spouse, or dependent is a student, the taxpayer may be eligible for a nonrefundable credit of up to $2,000 (20% of the first $10,000 of qualified tuition and expenses). The credit is allowed for an unlimited number of years per taxpayer basis. It covers all 4 years of post-secondary education as well […]

Individual IRA Contributions (Traditional or ROTH)

If you and/or your spouse have taxable compensation (earnings subject to FICA and Medicare tax), you may be able to contribute to and Individual Retirement Account. The maximum Traditional IRA or ROTH IRA contribution for 2018 is $5,500 if under the age of 50 and $6,500 if age 50 or older as of the end […]

HSA Contributions

Health Savings Account (HSA) contribution limitations for 2019 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 […]

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 […]