Service is the Plus
2018 Standard Mileage Rate Released
Beginning on Jan. 1, 2018, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:
54.5 cents for every mile of business travel driven, up 1 cent from the rate for 2017.
18 cents per mile driven for medical or moving purposes, up 1 cent from the rate for 2017.
14 cents per mile driven in service of charitable organizations.
Tax Reform for 2018
The House and Senate have both passed Tax Legislation! Now they have to come together to make it a law. Click here to see a comparison of each bill.
Permanently Extended Tax Provisions
Educator Expenses: Deduct up to $250 out-of-pocket expenses incurred for books, certain supplies, equipment, and supplementary materials used in the classroom. The PATH Act of 2015 makes this deduction permanent and provides for indexing the $250 ceiling for inflation after 2015 ($250 in 2016). In addition, beginning in 2016, this deduction includes professional development expenses, which are expenses for courses related to the curriculum in which the educator provides instruction.
State and local Sales Tax Deduction: Taxpayers can elect to deduct state and local general sales taxes instead of state and local income taxes. Since we don't have a state income tax, this is a great option for taxpayers in TN. You can either use actual sales tax expense or an optional IRS sales tax table. You may also add sales tax paid for specific large items such as a motor vehicle, a boat, construction or major renovation of your home.
Charitable Distribution From IRA: Individuals age 70 1/2 and older can make a tax-free qualified charitable distribution from an IRA directly to a qualified charitable organization. You can exclude no more than $100,000 from income. For joint filers, each spouse can exclude up to $100,000. This distribution does count toward the required minimum distribution.
The American Opportunity Tax Credit: credit of up to $2,500 for qualified educational expenses. The credit phases out when adjusted gross income reaches $80,000 for single taxpayers and $160,000 for married filing jointly taxpayers.
P.O. Box 1628 • Shelbyville, TN 37162-1628 • Phone: 931-685-0503 • Fax: 931-685-0138
Bookkeeping Plus © 2009. All rights reserved.