Optimized Tax

2017 Tax Filing Highlights

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Our goal is that good planning makes your 2017 tax filing a non-event.

If you’re a member of The Elements Circle, letters with a simple overview and checklist are on their way to you soon (additional copies linked below). And here, we’d like to share some tax law updates you may find helpful –

 

Business Highlights

  • The 2017 tax year is relatively quiet for businesses, since all the attention went to the massive changes taking effect January 1, 2018. There were a few items of note to be aware of: Don’t forget business income tax filing deadlines changed this past year — March 15 for S-corporations and partnerships, and April 15 for C-corporations. A new one actually takes effect this year — 2017 W-2’s and 1099’s not only have to be to workers by January 31, but now they also have to be filed with the IRS by the same date (before you could wait until February and March). A last big change for business — you can now offer employees a Qualified Health Reimbursement Arrangement without getting hit by a healthcare law penalty — this is a great way to reimburse your employees for healthcare costs tax-free to them, and deductible to you.

 

Individual Highlights

  • Similar to businesses, not much happened on the individual front, and all the excitement essentially awaits next year’s filing season. Some miscellaneous 2017 items to note, however, are: medical costs are deductible at a higher 10% threshold (from 7.5%) for those 65 or older. (This actually falls to 7.5% for everybody again in 2018.) The normal tax brackets, limits, and other tax figures got their normal inflation adjustment for 2018 — so you can up your 401k contribution at work by another $500, Social Security will calculate on your paycheck up to $128,400 (up from $127,200), and Roth IRA contribution eligibility starts phasing out at $189,000 for joint filers ($120,000 for single).

 

Our Elements Flow – Tax Preparation gives a great a visual map for what steps your return will take, and of course, don’t hesitate to contact us at any point with questions.

Here’s to a smooth 2017 tax filing!