2017 Tax Facts

Attached are the 2017 amounts that have been adjusted for inflation as well as the 2017 Tax rate tables. If you have any questions please call us!


2017 Tax Rates

Identity theft

If you have been a victim of identity theft this information could be helpful. Please let us know if you have any questions.


client_handout identity theft

Values for Non Cash Charitable Donations

Ever wonder what those old items you donated equate to for a tax deduction? The following can be used as a reference.


FMV Guide Contributions

Ohio Requiring Drivers License Number to Efile

Ohio, along with other states, will require driver’s license information for the primary taxpayer and spouse (if Married Filing Jointly) beginning in tax year 2016 in an effort to combat stolen-identity tax fraud. Taxpayers will be asked to provide information from their driver’s license or state issued identification card. For taxpayers who do not have a driver’s license or state ID card, they will have the option to indicate such and still be allowed to e-file.

21st Century Cures Act Allows Small Employers to Offer Health Reimbursement Arrangements

On December 13, 2016, President Obama signed into law the 21st Century Cures Act.  The Cures Act, which pays for cancer research, mental health treatments, the fight against opioid abuse, also creates a new type of employer-provided health care coverage – qualified small employer health reimbursement arrangements. Previously, such plans did not meet the stringent requirements of the Affordable Care Act (ACA), otherwise known as “Obamacare,” and were subject to hefty penalties. Now, under the new law, small businesses can offer stand-alone health care reimbursement plans to their employees.

Section 18001 of the 21st Century Cures Act amends the Code, ERISA, and the ACA to exempt qualified small employer health reimbursement arrangements (QSEHRAs) from certain requirements that apply to group health plans. As a result, such plans can now be offered to employees of small businesses. A QSEHRA is defined as an arrangement offered by an employer that has fewer than 50 full-time employees and that does not offer group health plans to any of their employees. In order to qualify as a QSEHRA, the arrangement must:

(1) be provided on the same terms to all eligible employees of the employer;

(2) be funded solely by the employer without salary reduction contributions;

(3) provide, after an employee provides proof of insurance coverage, for the payment or reimbursement of medical expenses of the employee and family members; and

(4) limit annual payments and reimbursements to specified dollar amounts ($4,950 per year for individuals, and $10,000 for families).

QSEHRAs that meet these requirements are not considered group health plans and are exempt from the various requirements that apply to group health plans. An arrangement does not fail to be provided on the same terms to all eligible employees merely because employees’ permitted benefits vary with the price of a health insurance policy in the individual insurance market based on the ages of the employee and family members or the number of family members covered by the arrangement, provided that the variation is determined by reference to the same insurance policy for all eligible employees.

 

Coverage and payments under QSEHRAs are excluded from gross income, unless the employee does not have minimum essential health insurance coverage for the month in which the medical care was provided. Employers offering a QSEHRA must notify employees in advance regarding permitted benefits. Additional information reporting is required, including the reporting of benefit information on W-2 forms.

If you have questions or would like more information please give us a call.

Sharply Increased Form 1099 Penalties Take Effect

Starting in 2017, hefty increases in the penalties imposed  apply if a payer fails to timely file an information return, fails to include all information required to be shown on an information return, or includes incorrect information on an information return (including all variations of Form 1099). The new penalties run as high as $250 per information return, with maximum total penalties of $1,000,000 for certain small businesses and $3,000,000 for all others.

Generally, any person, including a corporation, partnership, individual, estate, and trust, which makes reportable transactions during the calendar year, must file information returns to report those transactions to the IRS. However, a payer does not need to file Form 1099-MISC for payments not made in the course of the payer’s trade or business. A payer is engaged in a trade or business if it operates for gain or profit.

If you have questions or need more information please call out office.