Our Winter Tax Newsletter is now available!
Topics this year include:
- How We Can Help
- Federal Tax Changes / RMD Planning
- Illinois Tax Changes / Road Warrior Relief
- Investments In your IRA
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Category: Tax Updates
Illinois Tax Amnesty Opportunity
We know changes are coming to Illinois Tax but this opportunity is not to be missed if you are behind in filing or paying Illinois tax – Illinois Tax Amnesty Program. Illinois is waiving the penalties and interest for taxes that are paid late and will not pursue any civil or criminal prosecution related to those taxes.
Here are some details:
- Must pay tax in full (and file if needed) between 10-1-2019 and 11-15-2019
- Good for 2011 – 2017 tax years
There is also a similar program for unpaid business franchise tax.
If you think you could take advantage of this please give us a call and we can confirm you qualify and talk more on how to proceed.
Latest edition of our Tax Newsletter
Our Winter 2018 Tax Newsletter is now available!
Clients can expect our Newsletter to be attached to an email which will be arriving soon.
Topics this year include:
- Why we are different
- Federal Tax Reform
- Tax Trap and Opportunity
- How Consultation can help
- Our Consultation Policy
- Library Event
Tax Presentation at the Library
Everyone is welcome to hang out with us for a free tax presentation at the St Charles Library on January 9th at 6:30 PM. Harry is the guest speaker and the event is sponsored by the St Charles Chamber of Commerce and SCORE. This is a no cost way to get caught up on tax changes this year. Bring your tax questions! Feel free to drop in or click here to sign up for the event.
Client Meals are still deductible!
Good news for all our business where meals with clients are an important part of marketing. Tax reform last year was unclear on this but the IRS just put out Notice 2018-76 that says meals with clients are still 50% deductible. Carry on and continue dining!
Backdoor Roth Strategy
For years, we have been advising clients about the benefits of the ‘Backdoor Roth’ strategy. Lack of IRS guidance had clouded the issue with many. Congress has finally put it’s finger on the scale with a few footnotes in the recent Tax Reform Bill.
Special Edition Newsletter – Business Tax Changes
Tax reform has both added and removed tax reduction opportunities for businesses in 2018. While the resulting tax code writing and interpretation will go on for quite some time, it is never too early to bounce the changes off of how you operate your business.
Check out our Special Edition Newsletter for some details.
Tax Savings Opportunity – Prepaying your property tax
We are contacting selected clients regarding a tax saving opportunity that is now available as a result of tax reform (Tax Cuts and Jobs Act) that was passed today.
You may benefit from prepaying your property taxes.
This legislation has limited the deductibility of property taxes for 2018 and beyond. In certain scenarios, it will be beneficial to pay your 2018 property tax bill before the end of 2017 and capture the deduction before it is lost.
The following must all be true to benefit on your 2017 tax return:
- Itemize deductions
- Pay Property tax
- Do not pay AMT tax
- Have the funds available to make a payment before the end of the year
Every county has different rules for prepaying your property taxes. For example, here are instructions for Kane County, Illinois: http://kanecountyconnects.com/2017/12/how-to-prepay-your-kane-county-property-tax-bill-and-potentially-save-money/
Please contact us if you would like us to analyze your specific situation to determine if prepaying your property taxes will be beneficial.
Why is my paycheck lower this month?
Increased Illinois tax withholdings!
The Illinois state legislature has recently enacted several ways for all of us to help with its fiscal problems – in the form of new tax law associated with the recent budget.
For your enjoyment….
– individual tax rate increase from 3.75% to 4.95%
– corporation tax rate increase from 5.25% to 7.00%
– limits to some deductions and credits for high income taxpayers
There were some taxpayer friendly provisions…
– New credit for teacher expenses
– Increased credit for K – 12 tuition
– Increased Earned Income Tax Credit
Wage earners will notice more withholding starting in July. Those making estimated payments on the state level may need to adjust those amounts.
Give us a call if you you have any questions or would just like to participate with us in the time-honored tradition of complaining about taxes.
http://www.revenue.state.il.us/…/Bullet…/2018/FY-2018-01.pdf
Marriage Penalty – ‘I do’ want to pay more tax…
Matters of the heart and tax matters normally need to be considered separately. That being said, it is good to be armed with the facts. The term ‘Marriage Penalty’ is thrown around a lot but this article breaks it down with some humor added for good measure. Taxes and humor…. who knew?