Standard Deduction:

Married filing Joint & Qualifying Widow (er) $12,700.00, Head of Household $9,350.00, Single/Married Separate $6,350.00.

Personal Exemption:

$4,050.00; starts to phase out at $261,500.00 for single filers, $156,900.00 for married filing separate, $313,800.00 for joint filers and $287,650.00 for Head of Household.

AMT Exemption $86,200.00 joint, $55,400.00 single, $43,100.00 married-separate

Minimum wage effective 07/01/2011:

http://www.illinois.gov/idol/Laws-Rules/FLS/Pages/minimum-wage-law.aspx

Tax brackets; Minimum Filing Requirements:

http://www.irs.gov/publications/p17/ch01.html

Child’s maximum amount of investment income not subject to parent’s rate (kiddie tax) is $2,100.00

Education credit: American Opportunity Tax Credit of $2,500 (100% of the first $2,000 of qualified expenses and 25% of the next $2,000.00) per student, subject to limitation due to adjusted gross income (not available to individuals with income exceeding$80,000 and for married couples with income exceeding $160,000). 

Student Loan Interest Deduction: A maximum deduction of $2,500 that phases out for individuals with incomes (AGI) between $65,000 and $80,000 and phases out for married couples with AGI’s between $130,000 and $160,000).

Mileage Deductions

Mileage Per Mile
Business $0.535 ($0.545 in 2018)
Charity $0.14 (does not change, set by statute)
Medical $0.17 ($0.18 in 2018)
Moving $0.17 ($0.18 in 2018)

IRA Deduction: Follow this link to see the latest from the IRS:

https://www.irs.gov/retirement-plans/ira-deduction-limits

HSA Deduction: Single maximum is $3,400.00, family maximum $6,750.00 with $1,000.00 catch-up for 55 and older.

401(k) Limits: $18,000.00   Catch-up limit is $6,000.00 for a total possible of $24,000

FICA Limit: $127,200.00 ($128,400 for 2018)

Section 179: $500,000.00, No reduction in this deduction until capital purchases exceed $2,000,000.00 of property investment.

Bonus depreciation: only for NEW equipment; a deduction of 50% for new equipment in 2017 (40% deduction in 2018 and 30% in 2019).

IRA Required minmum distribution at age 70 ½, see IRS FAQ’s at following link:

https://www.irs.gov/retirement-plans/retirement-plans-faqs-regarding-required-minimum-distributions

Annual Gift Tax Exclusion: $14,000.00; Federal Estate/Gift Tax Unified Exclusion: $5,490,000.00 for 2017 and $5,600,000 for 2018. For Illinois, the exclusion is $4,000,000.00 for 2017 and the same for 2018.

For 2017, FICA taxes are required to be withheld from employee pay at a rate of 6.2% of the first $127,200 ($128,400 in 2018)  and 1.45% for unlimited pay for medicare.  An additional medicare tax of 0.9% is required to be withheld from that portion of payroll exceeding $200,000 in a calendar year for single, head of household and qualifying widow(er) with qualifying child and $250,000 married filing jointly, .

 

HELPFUL LINKS:

Internal Revenue Service – home page

http://www.irs.gov/

IRS – Application for EIN

http://www.irs.gov/businesses/small/article/0,,id=102767,00.html

IRS – Individual Tax Return Refund status

https://sa.www4.irs.gov/irfof/lang/en/irfofgetstatus.jsp

Illinois Department of Revenue

http://www.revenue.state.il.us

Illinois Secretary of State

http://www.sos.state.il.us

Illinois Dept of Employment Security – information, forms & publications

http://www.ides.illinois.gov/Pages/default.aspx

McHenry County Tax Collector (Property Taxes)

http://mchenryil.devnetwedge.com/

Interest Rates for Mortgages and Certificates of Deposit, bank rating (soundness of the bank)

http://www.bankrate.com

Bank Rating (soundness of the bank) Information

http://www.veribanc.com

National Do Not Call Registry

https://www.donotcall.gov

County Look-Up

http://www.epodunk.com/counties/il_county.html

Currency Converter

http://www.oanda.com/convert/classic

USPS – Zip Code Look-up

http://zip4.usps.com/zip4/welcome.jsp