2017 Tax Tips from Rick…..



1. The deadline for individuals to file their 2017 income tax returns will be Tuesday April 17th, 2018.
The normal filing date of April 15th falls on a Sunday and Emancipation Day being on Monday, April
16th, 2018.

2. The 2017 Standard Mileage Rates are: 53.5 cents per mile for Business miles
17 cents per mile for Medical and Moving mileage
14 cents per mile for charitable mileage

3. HSA (Health Savings Account) annual deductible contributions limits for 2017 is $3,400 for individuals and $6,750 for families. If you are over 55 years old, an additional $1,000 can be contributed. No contributions are allowed after age 65.

4. Social Security recipients will see a Cost-of-Living Adjustment (COLA) – an increase of 2% in 2018.

5. The AFFORDABLE CARE ACT (ACA) is still in Effect for 2017. Most Americans are REQUIRED to have health care insurance for the entire year or you maybe subject to a penalty. Remember to bring in your Proof-of-Coverage when you get your taxes done.

6. All GM, FORD, CHRYSLER and other retirees are reminded to save their December 31st check stub as it will show the medical, vision and dental premiums paid. These premiums are deductible on your Wisconsin tax return.

7. Expiring Tax Breaks: Some common tax breaks expired at the end of 2016. But these tax credits were reinstated on February 10th, 2018 and available for 2017. These included:
* The above the line deductions for tuition will be available for those taxpayers that had college education expenses and did not qualify
for the American Opportunity Tax Credit and would be a larger refund than the Lifetime Learning Credit.
* The Mortgage Insurance Premiums (PMI) will be deducible as mortgage interest.
* Energy Credit for doors, windows, insulation, furnaces and central air will be available for a Tax Credit if bought & installed in 2017.

8. Using a 529 Plan to save for College; make sure you make your 2017 Contributions by December 31st, 2017.

9. Earned Income Tax Credit (EITC) Just a reminder to clients that qualify for this tax credit. We MUST have documentation that shows that the child(ren) lived with you for more than half the year at the same address.

10. Education Tax Credits: You MUST bring in the 2017 Form 1098-T tuition statement and a copy of the student’s full “Billing Account Activity Detail” from the college. Also, be sure to bring in all amounts paid for course material paid for in 2017. (required books, supplies, equipment)

11. Wisconsin Homestead Credit for 2017 will require taxpayers who are under 62 years old to be either be 100% disabled or have Earned Income in order to qualify. You will need to bring in proof of your disability or your earned income.