2017

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Tax Extenders Reinstated

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In the massive budget deal passed last week, Congress has bestowed surprise tax breaks on homeowners, students and the climate conscious. There are tax breaks for mortgage insurance premiums, higher-education expenses, energy-efficient home-improvement projects and more. These were tax breaks that expired at the end of 2016, but are now back on for 2017, now that Trump has signed them into law.

The immediate good news for taxpayers: You could see additional tax savings on the tax return you’re filing now—for the 2017 tax year. Below are some highlights. For a complete list, click here. 

Tax Relief for Families and Individuals

Extension and modification of exclusion from gross income of discharge of qualified principal residence indebtedness. The provision extends through 2017 the exclusion from gross income of a discharge of qualified principal residence indebtedness. The provision also modifies the exclusion to apply to qualified principal residence indebtedness that is discharged pursuant to a binding written agreement entered into in 2017.

Extension of mortgage insurance premiums treated as qualified residence interest. The provision extends through 2017 the treatment of qualified mortgage insurance premiums as interest for purposes of the […]

By |2020-09-03T20:04:43+00:00February 13th, 2018|deduction, deductions, New Tax Laws, tax, tax implications|0 Comments

New Health Saving Account Limits for 2018

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The Internal Revenue Service released the 2018 inflation-adjusted limitations for health savings accounts.

In Revenue Procedure 2017-37, the IRS said the annual contribution limitation on deductions for an individual with self-only coverage under a high deductible health plan is $3,450. For calendar year 2018, the annual limitation on deductions for an individual with family coverage under a high deductible health plan is $6,900. HSAs typically require high deductibles, but they allow people to set aside money from their paychecks on a pre-tax basis for medical expenses.

For calendar year 2018, according to the IRS, a “high deductible health plan” is defined as a health plan with an annual deductible that is not less than $1,350 for self-only coverage or $2,700 for family coverage, and the annual out-of-pocket expenses (deductibles, co-payments, and other amounts, but not premiums) do not exceed $6,650 for self-only coverage or $13,300 for family coverage.

For 2017, the lower limit on the annual deductible under a high-deductible plan was $1,300 for self-only coverage and $2,600 for family coverage, the same as for 2016. The upper limit for out-of-pocket expenses was $6,550 for self-only coverage and $13,100 for family […]

By |2020-09-03T20:04:55+00:00May 24th, 2017|hsa|0 Comments

House Republicans Pass Amended AHCA

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On May 4, 2017, members of the U.S. House of Representatives voted along party lines to pass an amended version of the American Health Care Act – proposed legislation to repeal and replace the ACA. The AHCA will now move on to be considered by the Senate. This ACA Compliance Bulletin provides an overview of the proposed legislation and its potential impact going forward.

The AHCA needed 216 votes to pass in the House. Ultimately, it passed on a party-line vote, with 217 Republicans and no Democrats voting in favor of the legislation. The AHCA will only need a simple majority vote in the Senate to pass. If it passes both the House and the Senate, the AHCA would then go to President Donald Trump to be signed into law.

The attached bulletin provides helpful information on how this may affect employers and individuals. We will keep you updated on any new developments and in the meantime, feel free to reach out to your Linkenheimer CPA with any questions.

Download the ACA Compliance Bulletin Now

By |2020-09-03T20:04:56+00:00May 9th, 2017|affordable care act, Health care|0 Comments

Trump’s 2017 Tax Reform Unveiled

The White House  issued President Trump’s goals and key features for tax reform, including cut corporate tax rates, flattened individual marginal income tax brackets, and repeal of the estate and alternative minimum taxes. He outlined these proposals in a one page bulletin which you can see below. The individual and business tax reform highlights include the following:

Proposed individual tax provisions:

  • Down from the current seven tax rates to three- 10%, 25% and a top rate of 35% (down from 39.6%).
  • Elimination of the Estate Tax.
  • Elimination of itemized deductions outside of mortgage interest and charitable contributions.
  • Repeal of the Alternative Minimum Tax (AMT).
  • Repeal of the 3.8% tax on net investment income.
  • Doubling of the standard deduction for married couples and individuals.
  • Tax relief for families and dependent care expenses.

Proposed business tax provisions:

  • Decreasing the top corporate tax rate to 15% (current top tax rate is 35%).
  • The 15% tax rate would apply to business income of pass-through entities such as partnerships, S corporations and limited liability companies.
  • A one time tax on business profits (at an unspecified tax rate) in foreign countries repatriated to the United States.
  • Introduction of a territorial tax system in place of the current worldwide tax regime.

Below is the one page bulletin released from the White House. […]

By |2020-09-03T20:04:56+00:00May 4th, 2017|tax, tax planning|0 Comments

More Info on ACA Repeal and Replacement

House Republicans have unveiled a repeal and replacement plan for the Affordable Care Act (ACA). The GOP’s American Health Care Act (ACHA) would eliminate most of the ACA’s taxes, including penalties connected with individual and employer mandates, the net investment income (NII) tax and the Additional Medicare tax. Left in place, although delayed, would be the excise tax on high dollar health plans. Also left in place, would be a number of non-tax provisions related to scope of coverage, benefits and children- including allowing dependents to continue to stay on their parents’ plan until the age of 26, prohibiting health insurers from denying coverage or raising rates to patients based on pre-existing conditions, and forbidding life-time limits on insurance coverage.

The House GOP plan has been rejected by Democrats. Some Republicans have said the plan does not go far enough in repealing all of the ACA. As March moves forward, a vote on the house floor is eventually expected.

To read the impact of the ACA changes, new age-based credits, repeal of NII tax, expanded HSA and other topics, click the link for a detailed read from CCH and Wolters Kluwer. CCH Tax Briefing – ACA Repeal […]

By |2020-09-03T20:04:57+00:00March 14th, 2017|affordable care act, Health care|0 Comments
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