2018 Tax Season Quick Reference Guide Flow Chart Table

Transcription

1 Personal Exemption Deduction $3,950 $4,000 $4,050 $4,050 $0 For qualifying relative gross income test $3,950 $4,000 $4,050 $4,050 $4,150 AMT Exemption MFJ, QW $82,100 $83,400 $83,800 $84,500 $109,400 S, HH $52,800 $53,600 $53,900 $54,300 $70,300 MFS $41,050 $41,700 $41,900 $42,250 $54,700 AMT Exemption Phase-out 2018 Status Phase out MFJ QW $1,000,000-$1,437,600 S, HH $500,000-$781,200 MFS $500,000-$718,800 AMT for Dependent Under age 18?. Exemption is $7,600 plus earned income, not to exceed $70,300 if Single Exemption is $70,300 reduced by 25% of the excess AMTI over $500,000 for Single Age 18, earned income less than one-half of support? Exemption is $109,400 reduced by 25% of the excess AMTI over $1,000,000 for MFJ Over age 18, under age 24, full-time student, earned income less than one-half of support? Exemption is $54,700 reduced by 25% of the excess AMTI over $500,000 for MFS phone: , ext. 3 web: natptax.com natp@natptax.com 1

2 Deductions & Reimbursements 2018 Tax Season Quick Reference Standard Deduction MFJ, QW $12,400 $12,600 $12,600 $12,700 $24,000 HH $9,100 $9,250 $9,300 $9,350 $18,000 S $6,200 $6,300 $6,300 $6,350 $12,000 MFS $6,200 $6,300 $6,300 $6,350 $12,000 Additional Married, QW $1,200 $1,250 $1,250 $1,250 $1,300 Single $1,550 $1,550 $1,550 $1,550 $1,600 Dependent EI=earned income $1,000 or EI+$350 $1,050 or EI+$350 $1,050 or EI+$350 $1,050 or EI+$350 $1,050 or EI+$350 Foreign Earned income exclusion $99,200 $100,800 $101,300 $102,100 $103,900 Maximum housing expense $29,760 $30,240 $30,390 $30,630 $31,170 Foreign housing exclusion $13,888 $14,112 $14,182 $14,294 $14,546 Standard Mileage Rate Business Medical Moving Charitable Depreciation component Per Diem 10/1/14 9/30/15 10/1/15 9/30/16 10/1/16 9/30/17 10/1/17 9/30/18 10/1/18-9/30/19 Lodging $83 $89 $91 $93 $94 M&IE $46 $51 $51 $51 $55 Transportation M&IE $59 $63 $63 $63 $66 High/Low Substantiation 10/1/13 9/30/14 10/1/14 9/30/15 10/1/15 9/30/16 10/1/16 9/30/17 M&IE High $65 $65 $68 $68 $68 M&IE Low $52 $52 $57 $57 $57 10/1/17 9/30/18 Lodging High $186 $194 $207 $214 $216 Lodging Low $118 $120 $128 $132 $134 Day Care CACFP Reimbursements Contiguous States Day Care Per Diem (deduction on tax return) Contiguous States 7/1/13-6/30/14 7/1/14-6/30/15 7/1/15-6/30/16 7/1/16-6/30/17 7/1/17-6/30/ Breakfast $1.27 $1.28 $1.32 $1.31 $1.31 Lunch and Supper $2.38 $2.40 $2.48 $2.47 $2.46 Snack $0.71 $0.71 $0.74 $0.73 $0.73 phone: , ext. 3 web: natptax.com natp@natptax.com 2

3 Choosing Standard Mileage Rate Is this the first year the vehicle is used for business purposes? Stop, cannot elect the standard mileage rate. Can continue if elected the first year. Does the taxpayer have five or more vehicles in business use at the same time? Stop, cannot elect the standard mileage rate. Has the taxpayer claimed any prior depreciation on the vehicle using a method other than SL, claimed any 179 deduction, or claimed any bonus depreciation? Is the taxpayer a rural mail carrier who receives a qualified reimbursement? If the requirements to continue are satisfied at each step and business use is substantiated with timely and accurate records, then the standard mileage rate can be chosen to claim a business deduction for the business use of a vehicle. phone: , ext. 3 web: natptax.com natp@natptax.com 3

4 179 Expensing Was the property acquired by purchase from an unrelated party? Stop, the property is not eligible for 179. Was the property acquired for use in an active trade or business? Was the property placed in service during the tax year? Was the property used more than 50% for business? Is the property one of the following types of property: Tangible personal property. Other tangible 1245 property used in manufacturing, or used in the production, extraction or furnishing of transportation, communications, electricity, gas, water or sewage disposal services. Single purpose agricultural or horticultural structure. Storage facility for the distribution of petroleum. Off-the-shelf computer software. Heating or air conditioning placed in service after December 31, Qualified real property. The property is eligible for a 179 expense deduction. The property is not excepted property? Leased, lodging, foreign, or government use. phone: , ext. 3 web: natptax.com natp@natptax.com 4

5 Luxury Automobile Depreciation Limits 2018 Tax Season Quick Reference Automobile st year w/bonus $11,160 $11,160 $11,160 $11,160 $18,000 1st year no bonus $3,160 $3,160 $3,160 $3,160 $10,000 2nd year $5,100 $5,100 $5,100 $5,100 $16,000 3rd year $3,050 $3,050 $3,050 $3,050 $9,600 4th year $1,875 $1,875 $1,875 $1,875 $5,760 Light Trucks and Vans st year w/bonus $11,460 $11,460 $11,560 $11,560 $18,000 1st year no bonus $3,460 $3,460 $3,560 $3,560 $10,000 2nd year $5,500 $5,600 $5,700 $5,700 $16,000 3rd year $3,350 $3,350 $3,350 $3,450 $9,600 4th year $1,975 $1,975 $2,075 $2,075 $5,760 Combined 179, Bonus and Regular Depreciation Automobile $11,160 $11,160 $11,160 $11,160 $18,000 Light truck or van 6,000 pounds or less $11,460 $11,460 $11,560 $11,560 $18,000 Maximum Truck or van over 6,000 pounds but not more than 14,000 pounds $25,000 $25,000 $25,000 $25,000 $25,000 Truck or van over 14,000 pounds $500,000 $500,000 $500,000 $510,000 $1,000,000 Qualified Transportation Fringe Qualified parking $250 $250 $255 $255 $260 Transit passes and commuter highway vehicle $250 $250 $255 $255 $260 Qualified bicycle reimbursement $20 $20 $20 $20 $0 Deductible Amount of LTC Premiums or less $370 $380 $390 $410 $420 Over 40, not over 50 $700 $710 $730 $770 $780 Over 50, not over 60 $1,400 $1,430 $1,460 $1,530 $1,560 Over 60, not over 70 $3,720 $3,800 $3,900 $4,090 $4,160 Over 70 $4,660 $4,750 $4,870 $5,110 $5,200 phone: , ext. 3 web: natptax.com natp@natptax.com 5

6 Health Savings Accounts Eligibility Is the individual a dependent of another taxpayer? Stop, the individual is not eligible for an HSA. Is the individual covered under a high deductible health plan for at least one month during the year? Is the individual covered by an impermissible plan at any time during the year? Is the individual enrolled in Medicare? The individual is eligible for an HSA for any month not covered by another plan and not covered by Medicare. Stop, not eligible for the months covered by an impermissible plan. Stop, the individual is not eligible for any month covered by Medicare. phone: , ext. 3 web: natptax.com natp@natptax.com 6

7 Tax-free Scholarship or Fellowship Is the individual a candidate for a degree at an eligible educational institution? Stop, the scholarship or fellowship is not tax-free. Was the scholarship or fellowship used to pay qualified education expenses? The scholarship or fellowship does not represent payment for teaching, research, or other services required as a condition for receiving the scholarship or fellowship? The scholarship or fellowship satisfies the requirements to be excluded from income. phone: , ext. 3 web: natptax.com natp@natptax.com 7

8 Eligible Expense for Education Benefit AOTC LL Sch Int *T&F ESA QTP IRA Bond Employer 2106 Tuition Fees Books Supplies Equipment Room/Board Transportation Special needs Payment to QTP Payment to ESA Elementary Other necessary AOTC = American opportunity tax credit LL = Lifetime learning credit Sch = Scholarships Int = Student loan interest T&F = Tuition and fees deduction * te: Deduction expired for years beginning after Dec. 31, 2016, unless extended. ESA = Coverdell education savings account QTP = Qualified tuition plan IRA = Exception to 10% penalty for early distribution from IRA used for qualified education expenses Bond = Savings bond interest exclusion Employer = Employer-provided educational assistance 2106 = Unreimbursed employee business expense for work-related education phone: , ext. 3 web: natptax.com natp@natptax.com 8

9 Education Credits Eligibility Checklist Did the taxpayer pay qualified educational expenses for an eligible student? Stop, the taxpayer is not eligible for the American Opportunity Credit or the Lifetime Learning Credit. Did the academic period for which the expense was paid begin in the tax year or the first three months of the next tax year? Is the eligible student the taxpayer, the taxpayer s spouse, or a dependent for whom the taxpayer can claim an exemption? Is the taxpayer listed as a dependent on another person s tax return? Did the taxpayer file MFS? Stop, the taxpayer is not eligible for the American Opportunity Credit or the Lifetime Learning Credit. For any part of the year, was the taxpayer or spouse a nonresident who did not elect to be treated as a resident? Go to top of next page. phone: , ext. 3 web: natptax.com natp@natptax.com 9

10 Education Credits Eligibility Checklist (continued) 2018 Tax Season Quick Reference Is the taxpayer s modified adjusted gross income less than $90,000 ($180,000 MFJ)? Is the taxpayer s modified adjusted gross income less than $67,000 ($134,000 MFJ)? Stop. The taxpayer is not eligible for the American opportunity tax credit. Stop. The taxpayer is not eligible for the lifetime learning credit. Does the taxpayer have a tax liability (Form 1040 Line 11 minus sum of Schedule 3 (1040) Lines 48 and 49 and Schedule R Line 22)? Is the taxpayer claiming a lifetime learning credit for the same student? Is the taxpayer claiming an American opportunity tax credit for the same student? Did the taxpayer use the same expenses to claim a deduction or credit, or to figure the tax-free portion of a Coverdell ESA or QTP distribution? Were the same expenses paid with taxfree educational assistance, such as a scholarship, grant, GI Bill, or assistance provided by an employer? Stop, the taxpayer is not eligible for the American Opportunity Credit or the Lifetime Learning Credit. Go to top of next page. phone: , ext. 3 web: natptax.com natp@natptax.com 10

11 Education Credits Eligibility Checklist Did the taxpayer, or someone else who paid these expenses on behalf of a student, receive a refund of all of the expenses? Stop. The taxpayer is not eligible for the American opportunity tax credit or the lifetime learning credit. The taxpayer is eligible to claim the American opportunity tax credit or the lifetime learning credit as appropriate. Form 8867 EIC Checklist, Part I Is the taxpayer s filing status MFS? Stop, the taxpayer cannot claim EIC. Does the taxpayer have a SSN that allows him or her to work or is valid for EITC purposes? Is the taxpayer filing Form 2555 or Form 2555EZ (foreign earned income)? Stop, the taxpayer cannot claim EIC. Was the taxpayer a nonresident alien for any part of the year? Is the taxpayer s filing status MFJ? Investment income more than $3,500? Go to top of next page. phone: , ext. 3 web: natptax.com natp@natptax.com 11

12 Form 8867 EIC Checklist, Part I Stop, the taxpayer cannot claim EIC. Is the taxpayer, or spouse, a qualifying child of another person? With a qualifying child, continue with Part II. Without a qualifying child, skip to Part III. Form 8867 EIC Checklist, Part II Is the child the taxpayer s son, daughter, stepchild, foster child, brother, sister, stepbrother, stepsister, halfbrother, half-sister, or a descendent of any of them? Stop, the child is not a qualifying child for EIC. Complete the checklist for another child or go to Part III. Is the child unmarried; or is the child married, claimed as the taxpayer s dependent and not filing a joint return? Did the child live with the taxpayer in the United States for over half of the year? Was the child under age 19 and younger than the taxpayer; or under age 24, a full-time student and younger than the taxpayer; or permanently and totally disabled? Go to top of next page. phone: , ext. 3 web: natptax.com natp@natptax.com 12

13 Form 8867 EIC Checklist, Part II Can any other taxpayer claim this child as a qualifying child under the tie-breaker rules? Stop, the child is not a qualifying child for EIC. Does the child have a valid SSN? Are the taxpayers earned income and adjusted gross income less than: $40,320 with one child ($46,010 MFJ) $45,802 with two children ($51,492 MFJ) $49,194 with three children ($54,884 MFJ) The taxpayer can claim EIC. Form 8867 EIC Checklist, Part III Was the taxpayer s main home in the United States for more than half of the year? Stop, the taxpayer cannot claim EIC. Was the taxpayer at least age 25 but under age 65 at the end of the year? Was the taxpayer eligible to be claimed as a dependent on anyone else s federal income tax return for the year? Are the taxpayers earned income and adjusted gross income less than $15,270 ($20,950 if MFJ)? Stop, the taxpayer cannot claim EIC. The taxpayer can claim EIC. phone: , ext. 3 web: natptax.com natp@natptax.com 13

14 Maximum EIC Taxpayers with one child $3,305 $3,359 $3,373 $3,400 $3,461 Taxpayers with two children $5,460 $5,548 $5,572 $5,616 $5,716 Taxpayers with three or more children $6,143 $6,242 $6,269 $6,318 $6,431 Taxpayers with no children $496 $503 $506 $510 $519 Child Tax Credit Phase-out MFJ $110,000 $110,000 $110,000 $110,000 $400,000 S, HH, QW $75,000 $75,000 $75,000 $75,000 $200,000 MFS $55,000 $55,000 $55,000 $55,000 $200,000 Credit per Dependent Child tax credit $1,000 $1,000 $1,000 $1,000 $2,000 Other Dependent Credit n/a n/a n/a n/a $500 Adoption credit $13,190 $13,400 $13,460 $13,570 $13,810 Adoption credit Phase-out $197, ,880 Pension Limitations $201, ,010 $201, ,920 $203, ,540 $207, ,140 Provision Limitations Contribution Limits Individual Retirement Account contribution [ 219(a) (5)] $5,500 $5,500 $5,500 $5,500 $5,500 Additional if over age 50 $1,000 $1,000 $1,000 $1,000 $1,000 Defined contribution plan [ 415(c)(1)(A)] $52,000 $53,000 $53,000 $54,000 $55,000 Defined benefit plan [ 415(b)(1)(A)] $210,000 $210,000 $210,000 $215,000 $220,000 Salary Deferral Limits 401(k), 403(b), SARSEP, 501(c)(18)(D) [ 402(g) (1)] $17,500 $18,000 $18,000 $18,000 $18,500 SIMPLE plans [ 408(p)(2)(E)] $12,000 $12,500 $12,500 $12,500 $12,500 State and local government plans [ 457(e)(15)] $17,500 $18,000 $18,000 $18,000 $18,500 Catch-up Contributions 401(k), SARSEP, 403(b), 457 [ 414(v)(2)(B)(i)] $5,500 $6,000 $6,000 $6,000 $6,000 SIMPLE IRA, SIMPLE 401(k) [ 414(v)(2)(B)(ii)] $2,500 $3,000 $3,000 $3,000 $3,000 Compensation Limits Qualified plans [ 401(a)(17)] $260,000 $265,000 $265,000 $270,000 $275,000 SEP mandatory participation [ 408(k)(2)(C)] $550 $600 $600 $600 $600 Key employee in a top heavy plan [ 416(i)(1)(A)(i)] $170,000 $170,000 $170,000 $175,000 $175,000 Highly compensated employee [ 414(q)(1)(B)] $115,000 $120,000 $120,000 $120,000 $120,000 phone: , ext. 3 web: natptax.com natp@natptax.com 14