Kiddie Tax

Children who have investment income greater than $2,100 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 […]

Subtraction For Contributions to 529 Plans

Effective for tax years beginning after 2016, the legislation allows personal income taxpayers to subtract up to $1,500 ($3,000 for married joint filer) of contributions to any state’s Sec. 529 college savings plan or prepaid tuition plan. The subtraction excludes amounts that are rolled-over from other college savings plans and is limited to taxpayers who […]

Standard Deduction

Under the Tax Cuts and Jobs Act, the personal exemption for 2018 and future years is $0. The table below summarizes the standard deduction for 2018:   Filing Status Standard Deduction Additional for elderly and/or blind Single $12,000 $1,600 Head of Household $18,000 $1,600 Married Filing Joint $24,000 $1,300 Married Filing Separate $12,000 $1,300  

2018 Standard Mileage Rates

Beginning on January 1, 2018, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be: 54.5 cents per mile for business miles driven, up from 53.5 cents for 2017 18 cents per mile driven for medical or moving purposes, up from 17 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 […]

2017 Mileage Rates

Beginning on January 1, 2017, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be: 53.5 cents per mile for business miles driven, down from 54 cents for 2016 17 cents per mile driven for medical or moving purposes, down from 19 cents for 2016 14 cents […]

Tax Records

The length of time you should keep a document depends on the action, expense or event.  Generally you should keep a copy of your tax return and your records that support an item of income, deduction or credit shown on your tax return for 3 years.  Health care information statements should also be kept for […]

What is Tax-related Identity Theft?

Tax-related identity theft occurs when someone uses your Social Security number (SSN) to file a tax return claiming a fraudulent refund. If you become a victim, the IRS is committed to resolving your case as quickly as possible. You may be unaware that this has happened until you e-file your return and discover that a […]