2018 TAX INFO  

Income

• Qualified dividends are eligible for a lower tax bracket (0%, 15%, or 20%) depending on your income tax bracket.
• Capital gains rate is 15%.   0%  if you use the lowest tax brackets.  20% if you are in the 39.6% bracket.
• LLC's (single-member) are taxed as sole proprietors, unless an election is timely filed to be taxed as a corporation or a Sub-S corp.
• LLC's (multi-member) are taxed as partnerships, unless an election is timely filed to be taxed as a corporation or a Sub-S corp.
• New ObamaCare forms and rules must be filled out and complied with on all returns.

Expenses

• Mileage rate for business use of vehicle is 54.5 cents.
• Mileage rate for  charity use of vehicle is 14 cents.
• Mileage rate for medical & moving use is 18 cents.
• Sales tax deduction for itemizers available from IRS tables.
• Additional sales tax deduction for large purchased items.
• Travel per diem expenses are $284 for Hi-Cost areas and $191 for Lo-Cost areas after 9/30/20117.
• Travel per diem expenses are $287 for Hi-Cost areas and $195 for Lo-Cost areas after 9/30/2018.
• Standard deduction for married joint $24,000.  
• Standard deduction for married separate $12,000.
• Standard deduction for single $12,000.  
• Standard deduction for head of household $18,000.
• Personal exemption amount is  $0.
• Student loan interest expense deduction is $2,500 maximum.

Credits

• Don't forget to use the earned income credit.  Use Schedule EIC with your 1040. The earned income credit can range from $2 to as much as $6,431 depending on your individual situation.
• Child tax credit for dependent child under age 17 is 2,000.
• Education credits available for college and post high-school tuition paid for education. 
• American Opportunity credit is a max of $2,500 and the Lifetime learning credit is a max of $2,000.

Retirement

• IRA deduction is $5,500.  IRA deduction is $6,500 for those 50 years & older.
• Simple pension plan deferral limit is $12,500 per employee.  Add'l $3,000 if 50 years & older.
• 401(k) pension plan deferral limit is $18,500 per employee.  Add'l $6,000 if 50 years & older.

Payroll taxes

• The self-employed rate is 15.3%.   This is for those who use Schedule C with 1040.
• Employer & employee rates are 7.65% & 7.65% respectively.  Social Security wage base is $128,400 for 2018.

Please check back for more info.  Please contact us if you need more info or need a consultation.

If you need a question answered please use contact page.

Links

   IRS Website                    www.irs.gov

   Florida Dept of Revenue   www.floridarevenue.com

   Florida Sunbiz                 http://dos.myflorida.com/sunbiz/

   Legal Forms                    http://freelegalforms.net/  

   Social Security Admin      https://www.ssa.gov/

   Osceola County Prop Appraiser    http://www.property-appraiser.org/

   Loan Amortization           https://www.calculator.net/loan-calculator.html