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B&G Accounting and Tax Service

B & G Accounting and Tax Services, LLC  
 

NEW TAX RULES FOR 2017 Filing Season

The Internal Revenue Service announced that the nation’s tax season will begin Monday, Jan. 29, 2018 and reminded taxpayers claiming certain tax credits that refunds won’t be available before late February.

Casualty and theft losses. Disaster relief enacted for those impacted by Hurricane Harvey, Irma, or Maria includes a provision that modified the calculation of casualty and theft losses. See Pub. 976, Disaster Relief, for more information.

Due date of return. File your tax return by April 17, 2018. The due date is April 17, instead of April 15, because of the Emancipation Day holiday in the District of Columbia—even if you do not live in the District of Columbia

Childless EIC. You may be able to qualify for the EIC under the rules for taxpayers without a qualifying child if you have a qualifying child for the EIC who is claimed as a qualifying child by another tax-payer.

Access your online account. You must authenticate your identity. To securely log in to your federal tax account, go to the
Internal Revenue Services website . View the amount you owe, review 18 months of payment history, access online payment options, and create or modify an on-line payment agreement. You can also access your tax records on-line.

Personal exemption amount in-creased for certain taxpayers. Your personal exemption is $4,050. But the amount is reduced if your adjusted gross income is more than:


  • $156,900 if married filing separately

  • $261,500 if single,

  • $287,650 if head of house-hold, or

  • $313,800 if married filing jointly or qualifying widow(er).

Limit on itemized deductions. You may not be able to deduct all of your itemized deductions if your adjusted gross income is more than:

  • $156,900 if married filing separately,
  • $261,500 if single,
  • $287,650 if head of household, or
  • $313,800 if married filing jointly or qualifying widow(er).

Standard mileage rates. The 2017 rate for business use of your vehicle is 53.5 cents a mile. The 2017 rate for use of your vehicle to get medical care or to move is 17 cents a mile. Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.

Adoption credit. The adoption credit and the exclusion for employer-provided adoption benefits have both increased to $13,570 per eligible child in 2017. The amount begins to phase out if you have modified adjusted gross in-come (MAGI) in excess of $203,540 and is completely phased out if your MAGI is $243,540 or more.

Exemption amount for alternative minimum tax (AMT). The exemption amount for the AMT has increased to $54,300 ($84,500 if married filing jointly or qualifying widow(er); $42,250 if married filing separately).

Standard deduction. For 2017, the standard deduction has in-creased to $6,350 if single; $12,700 if married filing jointly or qualifying widow(er); $6,350 if married filing separate returns; and $9,350 if head of household.

Refunds in 2018

Choosing e-file and direct deposit for refunds remains the fastest and safest way to file an accurate income tax return and receive a refund. The IRS expects more than four out of five tax returns will be prepared electronically using tax software.

The IRS still anticipates issuing more than nine out of 10 refunds in less than 21 days, but there are some important factors to keep in mind for taxpayers.

By law, the IRS cannot issue refunds on tax returns claiming the Earned Income Tax Credit or the Additional Child Tax Credit before mid-February. This applies to the entire refund — even the portion not associated with the EITC and ACTC.

IRS expects the earliest EITC/ACTC related refunds to be available in taxpayer bank accounts or on debit cards starting on Feb. 27, 2018, if those taxpayers chose direct deposit and there are no other issues with the tax return. This additional period is due to several factors, including banking and financial systems needing time to process deposits.

After refunds leave the IRS, it takes additional time for them to be processed and for financial institutions to accept and deposit the refunds to bank accounts and products. The IRS reminds taxpayers many financial institutions do not process payments on weekends or holidays, which can affect when refunds reach taxpayers. For EITC and ACTC filers, the three-day holiday weekend involving Presidents’ Day may affect their refund timing.

The 
Where's My Refund? ‎tool on IRS.gov and the IRS2Go phone app will be updated with projected deposit dates for early EITC and ACTC refund filers in late February, so those filers  will not see a refund date on Where's My Refund? ‎or through their software packages until then. The IRS, tax preparers and tax software will not have additional information on refund dates, so Where’s My Refund? remains the best way to check the status of a refund.