Frequently Asked Accounting Questions

For the 2017 tax year the mileage rates are as follows: 53.5 cents per mile for business, 17 cents per mile for medical and 14 cents per mile for charitable.

Return Type Original Due Date Extended Due Date Comments
Individual Form 1040 April 17 October 16
Partnership Form 1065 March 15 September 15 Fiscal year returns are due 2 ½ months after year-end. A 6 month extension is allowed.
S Corporations Form 1120S March 15 September 15 Fiscal year returns are due 2 ½ months after year-end. A 6 month extension is allowed.
C Corporations Form 1120 April 17 October 16 Fiscal year returns are due 3 ½ months after year-end. A 6 month extension is allowed.
Exempt Organizations Form 990 May 15 November 15 Extension will be a single, automatic 6 month extension.
Trust & Estates Form 1041 April 17 October 2 Fiscal year returns are due 3 ½ months after year-end. A5 ½ month extension is allowed.
FINCEN Report 114 April 17 October 16

The annual gift exclusion for the 2017 tax year is $14,000 per individual recipient.

For the 2017 tax year, the maximum penalty or “shared responsibility
payment” per household for failing to maintain minimum essential health care coverage is allocated for the number of months without coverage and is calculated based on the greater of:

  1. 5% of household income, OR
  2. $695 per adult $347.50 per child (under age 18), limited to a household maximum of $2,085.

For the 2017 tax year, the maximum HSA contributions are $3,400 for single and $6,750 for a family.  If you are over the age of 55, an additional $1,000 contribution is allowed.

Pay as much as you can to avoid higher interest payments and penalties. Contact the IRS to set up a payment plan. If you cannot pay under a payment plan, you may propose an offer in compromise that will allow you to pay some of the balance due. This is worked out with the IRS. If you are experiencing financial hardship, the IRS may suspend claims for a short period of time.

American Opportunity Credit (maximum benefit amount of $2,500):

  • Calculated based on up to $4,000 in qualified educational expenses  – 100% of the first $2,000 and 25% of the next $2,000.
  • Qualified expenses are amounts paid for tuition, fees and other related expenses such as books, supplies and equipment required for attendance. Expenses such as room and board, insurance and student health fees do NOT qualify.
  • Up to 40% of the credit is refundable.
  • Credit limited to 4 years.
  • The credit is phased out at certain income levels and is completely disallowed at income of $180,000 for married filing joint and $90,000 for single or head of household. The credit is not available for taxpayers filing married but separate.

Lifetime Learning Credit (maximum benefit amount of $2,000):

  • Calculated based on 20% of up to $10,000 in qualified educational expenses.
  • Qualified expenses are amounts paid for tuition and fees and other related expenses such as books, supplies and equipment required for attendance. In addition, expenses for courses taken to acquire or improve job skills qualify.  Expenses such as room and board, insurance and student health fees do NOT qualify.
  • Credit is NOT refundable.
  • No limit on the number of years the credit can be taken.
  • The credit is phased out at certain income levels and is completely disallowed at income of $131,000 for married filing joint and $65,000 for single or head of household. The credit is not available for taxpayers filing married but separate.

For the 2017 tax year, the standard deduction amounts are $6,350 for single/married filing separate, $12,700 for married filing joint and $9,350 for head of household.

You must make estimated payments for the current tax year if BOTH of the following apply:

  • Your federal withholding and any refundable tax credits will be less than the smaller of:
  • 90% of your current year tax, OR
  • 100% of the prior year’s tax
  • You expect to owe at least $1,000 after subtracting your withholding and refundable credits. 

There are many variables but, in general, you may claim a son, daughter, step-daughter, etc., who is:

  • under the age of 19 or under the age of 24 and is a full-time student or is permanently disabled, and
  • lives with you and does not providing more than one half of their own support.

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