January 2018 Tax & Business Alert

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STILL IMPORTANT: THE TAX IMPACT OF BUSINESS TRAVEL

With conference calls and Web meetings increasingly prevalent, business travel isn’t what it used to be. But many companies still send employees out on the road. This article describes important concepts related to travel, such as travel expenses as a fringe benefit, establishing an accountable plan and qualifying for business travel status.

 

HELP PREVENT TAX IDENTITY THEFT BY FILING EARLY

Many people might not start thinking about filing a tax return until close to this year’s April 17 deadline. But there’s another date to keep in mind: the day the IRS begins accepting 2017 returns in 2018. As this article explains, filing as close to this date as possible could protect a taxpayer from identity theft.

 

OWNER-EMPLOYEES NEED TO STAY UP TO SPEED ON EMPLOYMENT TAXES

Keeping up with the complexity of the Internal Revenue Code is challenging enough for employed individuals. But for owner-employees, the difficulty level is particularly high. This article explains how your business structure determines the rules you must abide by.

 

4 FINANCIAL PLANNING TIPS FOR SECOND MARRIAGES

Every year, a substantial percentage of weddings aren’t first-time nuptials but second (or subsequent) marriages. This brief article offers four tips to help such partners better manage the situation.

 

TAX CALENDAR

This calendar notes important tax deadlines for the first quarter of 2018.

 

IRS has extended a Deadline

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The IRS has extended the due date for the 2017 information reporting requirements under the Affordable Care Act, for insurers, self-insuring employers, and certain other coverage providers. Specifically, the date is extended for furnishing to individuals the 2017 Forms 1095-B (Health Coverage) and 1095-C (Employer-Provided Health Insurance Offer and Coverage). The new due date is March 2, 2018 (originally Jan. 31, 2018). No extension is granted for furnishing forms to the IRS, which are due on Feb. 28, 2018. (Notice 2018-6)

Alimony no longer a taxable transaction

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Currently, taxpayers who pay alimony may be able to deduct the payments from their taxable income, and recipients must claim alimony as taxable income. The Tax Cuts and Jobs Act will revise the rules. For divorce or separation agreements executed after Dec. 31, 2018 (or executed before but modified after this date), alimony payments are neither deductible by the payer nor includible in income by the recipient. This change is permanent.

Unearned Income of children rates change quickly in new tax law

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The “kiddie tax” has been modified under the Tax Cuts and Jobs Act (TCJA). Under current law, a child’s net unearned income is taxed at the parents’ tax rate if that rate is higher than the child’s. The remainder of the child’s taxable income is taxed at the child’s rate. Under the TCJA, for years beginning after Dec. 31, 2017, the taxable income of a child attributable to earned income is taxed under the rates for single people, and taxable income of a child attributable to net unearned income is taxed according to the brackets applicable to trusts and estates.