Standard Deduction: Married filing Joint & Qualifying Widow (er) $24,000.00, Head of Household $18,000.00, Single & Married Filing Separately $12,000.00.

 

Personal Exemption – has been eliminated.

 

Child Tax Credit: has been doubled to $2,000 per child beginning in 2018 and is available to be claimed for all your qualified children under age 17 at the end of the year.

 

AMT Exemption amount: $109,400.00 joint, $70,300.00 single or head of household, $54,700.00 married filing separately.

 

Minimum wage effective 07/01/2014:                                                                      http://www.illinois.gov/idol/Laws-Rules/FLS/Pages/minimum-wage-law.aspx

 

Who needs to file a tax return:                                                                                       https://www.irs.gov/help/ita/do-i-need-to-file-a-tax-return

 

Kiddie Tax: In 2018, under the new Tax Cuts and Jobs Act (TCJA) the kiddie tax will be based on the much more onerous tax rates for trusts, instead of the tax rates of the child’s parents on unearned income over $2,100 like it was under the old (pre-TCJA) rules. The following table provides an overview:

2018 Trust Tax Brackets and Rates on Ordinary Income %
$0 to $2,550 10
$2,551 to $9,150 24
$9,151 to $12,500 35
over $12,500 37

 

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 $0.545 in 2018
Charity $0.14 (does not change, set by statute)
Medical $0.18 in 2018
Moving $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 $3,450.00, family maximum $6,900.00 with $1,000.00 catch-up for 55 and older.

 

401(k) Contribution Limits: $18,500.00   Catch-up limit is $6,000.00 for a total possible of $24,500

 

FICA Limit:  $132,900 for 2019, $128,400 for 2018

 

Section 179: $1,000,000.00, No reduction in this deduction until capital purchases exceed $2,500,000.00 of property investment on new or used equipment.

 

Bonus depreciation: for either new or used equipment; a deduction of 100% for equipment purchases made between September 28, 2017 and               December 31, 2022.

 

IRA Required Minmum Distribution (RMD): begins 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: $15,000.00; Federal Estate/Gift Tax Unified Exclusion: $5,490,000.00 for 2017 and $11,180,000 for 2018. For Illinois, the exclusion is $4,000,000.00 for 2017 and the same for 2018.

 

For 2018, FICA taxes are required to be withheld from employee pay at a rate of 6.2% of the first $128,400 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 those filing as single, head of household and qualifying widow(er) with qualifying child and $250,000 for those filing as 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