Author Archives for Mark

Medical Expense Deduction Threshold Temporarily Reduced

A deduction is allowed for the expenses paid during the tax year for the medical care of the taxpayer, the taxpayer's spouse, and the taxpayer's dependents to the extent the expenses exceed a threshold amount. To be deductible, the expenses may not be reimbursed by insurance or otherwise. If the medical expenses are reimbursed, then they must be reduced by the reimbursement before the threshold is applied.

Comparison of Tax Rates

Minimum Wage

Federal Minimum WageThe current federal minimum wage is $7.25 per hour, and has not increased since July 2009. Beginning January 1, 2018, minimum wage rate generally must be paid to workers performing work on or in connection with covered federal contracts of $10.35 per hour and tipped employees performing work on or in connection with covered contracts generally must be paid a minimum cash wage of $7.25 per hour.Ohio State Minimum Wage RatesOhio’s minimum wage increased on January 1, 2018...

2018 Tax Filing Season Begins Jan. 29, Tax Returns Due April 17th

The IRS will begin accepting tax returns on Jan. 29. The nation’s tax deadline will be April 17 this year – so taxpayers will have two additional days to file beyond April 15.Although the IRS will begin accepting both electronic and paper tax returns Jan.

Employer's Deduction for Fringe Benefits Limited (Entertainment & Meals)

Under current law, a taxpayer may deduct up to 50% of expenses relating to meals and entertainment. Housing and meals provided for the convenience of the employer on the business premises of the employer are excluded from the employee's gross income. Various other fringe benefits provided by employers are not included in an employee's gross income, such as qualified transportation fringe benefitsNew law.

529 Plans Will Allow Private School K-12 Tax-Free Withdrawals

Starting in 2018, qualified educational expenses for 529 plans will include up to $10,000 a year in tuition and expenses for primary and secondary school expenses (public, private, or religious). Previously, you could only use it towards qualified college expenses. There were also some related changes to ABLE accounts for individuals with special needs.Put simply, you can now pay for up to $10k a year of private K-12 school through a 529 plan.

Kiddie Tax Modified

Under pre-Act law, under the “kiddie tax” provisions, the net unearned income of a child was taxed at the parents' tax rates if the parents' tax rates was higher than the tax rates of the child. The remainder of a child's taxable income (i.e., earned income, plus unearned income up to $2,100 (for 2018), less the child's standard deduction) was taxed at the child's rates. The kiddie tax applied to a child if: (1) the child had not reached the age of 19 by the close...

529 Contribution Limits

One of the most powerful college savings vehicles is the 529 college savings plan. Your money grows tax-free in those programs as long as you follow all of the relevant tax laws, and they allow you to make significant contributions. There is no maximum annual 529 contribution limit, but there are other factors to keep in mind as you decide how much to save in a 529.The IRS does not set limits on how much you can contribute to a 529 plan.

Ohio 529 Plan Income Tax Deduction

Saving for college in a 529 plan has many benefits; ranging from the power of compound interest, a wide variety of investment options, tax-free earnings, and tax-free withdrawals. For Ohioans saving with Ohio’s 529 Plan, there’s also a deduction from their state taxable income for contributions made to CollegeAdvantage. Since 2000, the yearly deduction has been set at a maximum of $2,000 per account but the New Year brings a big change to this Ohio tax deduction.Beginning on Jan.

Moving Expenses Deduction

Moving Expenses Deduction SuspendedUnder pre-Act law, taxpayers could claim a deduction under Code Sec. 217 for moving expenses incurred in connection with starting a new job if the new workplace was at least 50 miles farther from a taxpayer's former residence than the former place of work.New law. For tax years beginning after Dec.