free casino games

Currently viewing the tag: "taxes"

When it comes to taxes nothing is constant. Tax law is always changing whether it state, local, or federal laws and regulations. The IRS recently updated the 2017 draft Form 1040.

Beginning with the due date, the 2017 tax return due date is April 17, 2017.

Taxpayers filing a Form 1040 paper return who reside in Connecticut, District of Columbia, Maryland, Pennsylvania, Rhode Island, and West Virginia will mail their return to a different address this year. The updated mailing address will be listed at “Where Do You File” in the Form 1040 instructions.

Line 21 – Other Income – Qualified principal residence indebtedness is discharge only applies to discharges that took place before January 1, 2017 or where the discharge was subject to arrangement that entered into and evidence in writing before January 1, 2017.

Line 26 – Moving Expenses – The 2017 standard mileage rate for moving expenses is .17 (seventeen cents) per mile.

Line 34 – Reserve for future use – Prior to 2017, line 34 was “Tuition and Fees.” Unless Congress acts to extend “Tuition and Fees”, the deduction for “Tuition and Fees” expired on December 31, 2016.

Line 35 – Domestic Production Activities deduction – Prior to 2017, the domestic production activity allowed for Puerto Rico to be considered part of the US for purposes of the domestic production activity. The provision for Puerto Rico to considered part of the U.S. for purposes of the domestic production activity expired on December 31, 2016.

Line 40 – Itemized Deduction or Standard Deduction – For 2017, the standard deduction is $6,350 (singles taxpayers and married filing separately), ($12,700) married filing jointly and surviving spouse, ($9,350) head of household.

Line 45 – Alternative Minimum Tax – The alternative minimum tax exemption is $54,300 (single), $84,500 (married filing jointly and surviving spouse), and $42,250 (married filing separately)

Line 50 – Education Credits from Form 8963 – Taxpayers will to provide the educational institution’s employer identification number (EIN) on the Form 8863.

Line 53 – Residential Energy Credit – The non-business energy property credit expired on December 31, 2016.

Line 54 – Other credits – The maximum adoption credit is $13,570 per eligible child for both special and non-special needs adoption. The amount begins to phase out if modified adjusted gross income is excess of $203,540 and completely phases out if the modified gross income is $243,540 or more.

Self-employment tax – The maximum amount of self-employment income subject to the social security portion of the FICA tax is $127,200. There is no ceiling on Medicare wage base.

Individuals may use the farm optional method only if (a) their gross farm income was not more than $7,600 or (b) their net farm profits were less than $5,631. Using this method, the farm self-employment earnings equal the smaller of (1) two-thirds of gross income or (2) $5,200.

A self-employed taxpayer with both farm and non-farm income is allowed to use both optional computation methods if the farm income qualifies for the farm option optional method and non-farm income qualifies for the non-farm optional method. If both optional methods are used to calculate the net earnings form self-employment, the maximum combined total earnings from self-employment for any tax year can not exceed $5,200.

Line 61 – Health Care Individual Responsibility – For 2017, the payment (penalty) amount is the lesser of the (I) the sum of the monthly penalty amounts for months in the tax year during which one or more failures occurs, or (ii) the sum of the monthly national average bronze plan premiums for the plan. The monthly penalty amount is equal to 1/12 of the greater of $695 per family member (up to $2,085) or 2.5% of the amount by which the taxpayer household income exceeds the threshold.

Line 66 – Earned Income Credit (EIC) – The maximum credit for the Earned Income Credit is higher, and the Adjusted Gross Income (AGI) phase out are revised.

Line 73 – Credits – Line 73 Box “B” is labeled as “Reserved.” The draft instructions provided by the IRS contains no instructions for this box. The final version of 2016 Form 1040 also had this box labeled as “Reserved.”

Line 78 – Amount you owe – The Form 1040 draft instructions informs the taxpayer(s) that they can access the “Direct Pay” or “Pay By Card” using the IRS mobile application “IRS2GO”.

“Cash” is a new in-person payment option for individuals. This option is provided through retail partners of IRS and has a maximum of $1,000 per day per transaction. To use the cash payment option, a taxpayer must be registered online at ww.officialpayments.com/fedw. There is an additional fee associated using this payment method.

Post Footer automatically generated by Add Post Footer Plugin for wordpress.

Tagged with:
 
Set your Twitter account name in your settings to use the TwitterBar Section.