Income Tax Preparation & Small Business Accounting

Bipartisan Budget Act of 2018 (H.R. 1892)

Extension of Expiring Provisions. A number of tax provisions expired on December 31, 2016 and were not extended by the Tax Cuts and Jobs Act (H.R.1) that was signed into law on December 22, 2017. The Bipartisan Budget Act of 2018 extended many tax provisions for the 2017 tax year. All of these provisions now expire on December 31, 2017.

Here are just a few:

  • Cancellation of qualified principal residence indebtedness exclusion
  • Mortgage insurance premiums deduction
  • Tuition and fees deduction
  • Nonbusiness energy property credit
  • Alternative motor vehicle credit for qualified fuel cell motor vehicles
  • Electric vehicle credit for highway-capable 2-wheeled vehicles
  • Energy efficient home credit
  • Energy efficient commercial building property deduction
  • Indian employment credit
  • Race horse two years old or younger treated as 3-year property instead of 7-year property
  • Railroad track maintenance credit
  • Special expensing rules for certain film, television, and live theatrical productions
  • Empowerment zone tax incentives
  • And many more.

Tax Cuts & Jobs Act (H.R.1)

The Tax Cuts & Jobs Act (H.R.1) has most of its provisions starting in 2018. This tax act impacts the ACA, the PATH act, the FAST / Highway act and other tax laws.

-- We will update with more info soon!

Child-Related Tax Benefits Comparison
Our handy chart shows some of the basic eligibility requirements for tax benefits available to those with a qualifying child. This chart compares the Earned Income Tax Credit (EITC), the Dependency Exemption, the Child Tax Credit and the refundable part of the CTC, the Additional Child Tax Credit (CTC/ACTC), the Head of Household filing status and the Child and Dependent Care Credit.
View Chart

IL Withholding Income Tax Changes
This bulletin summarizes changes for individual and business income tax for the 2017 filing season and withholding income tax for the 2018 filing season.
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Protecting Americans from Tax Hikes Act of 2015
Extends laws retroactive to beginning of 2015 and makes some provisions permanent.

Child Tax Credit: will allow for higher credit for Taxpayers who qualify.

American Opportunity Tax Credit (AOTC) is now permanent.
EIC: the enhanced EIC for 3 or more children is permanent.
Educator Expense: (Teacher, Instructor, Counselor, Principal, or Aide who is K – 12 in school at least 900 hours) The $250.00 is permanent and will be indexed for inflation.  These expenses include computers, software, and other materials used in classroom.  Now also included are Professional Development expenses.

State and Local Sales Tax Deduction permanent.
Transportation Fringe Benefits.
Qualified Conservation Contributions
Charitable Contributions from IRA
Contribution of Food Inventory
Qualified Leaseholder Improvement

Research Tax Credit
100-Percent Gain Exclusion on Qualified Small Business Stock held more than 5 years is permanent

And many more items were extended or removed in 2017.

Highway Act Changes include:

Tax Return Due Dates Changed for Business Returns

FBAR Due Date is Changed  to April 15th instead of June 30 and extension is possible.

Tax Return Extensions Changed for Corporations, Trusts, Partnerships, S-Corps, FBAR, and non-profits Form 990 series.

Form 1098, Mortgage Interest Statement

Basis Consistency with Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return

Clarification of the 6-year Statute of Limitation for Assessment

Applicable Large Employer Definition Changes for Purposes of the Affordable Care Act

Transferring Excess Pension Assets

Health Saving Accounts for Veterans

Excise Tax on Alternative Fuels

The due dates for business tax returns have changed.

C corporations will generally be due the 15th day of the fourth month after year end. This is April 15 for calendar year corporations.

C corporations with a June 30 year end will continue to be due on the 15th day of the third month, which is September 15, until tax years beginning after December 31, 2025.

Partnership returns will be due the 15th day of the third month after year end. For calendar year partnerships, this will be March 15.

S corporations will be due the 15th day of the third month after year end. For calendar year S corporations, this will be March 15.

FBAR Due Date Changed
The Highway Act changes the date that FinCen 114 is due. The FBAR will be due on April 15 instead of June 30. In addition, taxpayers can now request a 6 month extension of time to file the FBAR.

Tax Return Extensions Changed
The time periods for extensions have been changed for tax years beginning after December 31, 2015. They are:

5 months for C corporations who file on a calendar year until tax year 2026.

5½ months for calendar year trusts.

6 months for partnerships and S corporations.

6 months for the FBAR.

6 months for calendar year non-profits who file Form 990 series.

6 months for any C corporation with taxable years ending on days other than December 31 or June 30.

7 months for C corporations with taxable years ending on June 30, but only for taxable years beginning before January 1, 2026.

Forms 1095-A, Forms 1095-B, Forms 1095-C to be received in 2018

For tax year 2017, the deadline for the Marketplace to provide Form 1095-A is January 31, 2018.

The deadline for insurers, other coverage providers and certain employers to provide Forms 1095-B and 1095-C has again been  extended to 30 days to March 2, 2018.

  • If you are expecting to receive a Form 1095-A, you should wait to file your 2016 income tax return until you receive that form.  
  • It is not necessary to wait for Forms 1095-B or 1095-C in order to file. HOWEVER, Other forms of documentation must be used! Forms to be used in lieu of the 1095 to provide proof of your insurance coverage include:
  1. Statement from your company (Human Resources) stating Who had coverage, which months, and with what Insurance Company
  2. Or documentation / statement from an employer indicating coverage and who is covered and dates of coverage.  OTHERWISE use

(2 or more of following)

  1. Insurance Cards (Medicare Card)
  2. W-2 and beginning and end of pay stubs showing medical deductions.
  3. Medicare – SSI or Soc Sec end of year statement
  4. Letter/statement from your insurer
  5. Explanation of Benefits
  6. Record of advance payments of the premium tax credit.
  7. Records of advance payments of the premium tax credit

ABP Tax Services is proud to provide affordable, quality tax preparation to McHenry County and the surrounding areas, including Wonder Lake,
Woodstock, McHenry, Crystal Lake, Harvard, Lake in the Hills, Elgin, Huntley, Rockford, Cary, Fox River Grove, Hebron, Algonquin, Lakewood, Alden,
Marengo, Spring Grove, Johnsburg, Chicago and more. We also provide remote tax preparation for out of state clients all over the US including
Missouri, Indiana, Florida, Virginia, Washington, California, Ohio and others. We can prepare and file local income tax forms for all 50 US states.