AYO ABRAHAM & ASSOCIATES

The Internal Revenue Service issued the annual cost of living adjustments Thursday for 401(k) contributions, pension plans and other retirement-related matters. The contribution limit for workers who are enrolled in 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan has grown from $18,000 to $18,500. The income ranges for determining eligibility to make deductible contributions to traditional Individual Retirement Arrangements, to contribute to R

On Thursday, October 19th, 2017, the IRS issued the annual inflation adjustments for 2017 for more than 50 tax provisions as well as the 2017 tax rate tables for individuals and estates and trusts (Rev. Proc. 2017-58). These provisions are used to file tax year 2018 returns in 2019. Most provisions are increasing for inflation in 2018, including the personal exemption, which increases from $4,050 in 2017 to $4,150 for 2018. The standard deduction for married taxpayers filing

The Internal Revenue Service said that for the upcoming 2018 filing season, it‎ will not accept electronically filed tax returns where the taxpayer does not address the health coverage requirements of the Affordable Care Act, the first tax season it has refused to accept such returns.‎ In an update Friday to the web page of its ACA Information Center for Tax Professionals, the IRS said will not accept the electronic tax return until the taxpayer indicates whether they had cov

Summary Cross References - Notice 2017-47 The Surface Transportation Act of 2015 changed the due date for filing partnership returns for tax years beginning in 2016. Under the old rules, Form 1065, U.S. Return of Partnership Income, was due by the fifteenth day of the fourth month following the close of the taxable year (April 15 for calendar-year partnerships). Under the new rules, the due date is the fifteenth day of the third month following the close of the taxable yea

Summary Cross References - Notice 2017-3 If an employer provides an employee with a company-owned vehicle, and the employee uses the vehicle for personal purposes, then the value of that personal use must be included as taxable income on the employee’s W-2. Under the general rule, the taxable amount equals the FMV of the total use, minus the amount the employee pays for the use, minus the amount excluded from income as a working condition fringe benefit. [Reg. §1.61-21(b)]

Summary Cross References - Edwards, T.C. Summary Opinion 2017-52, July 17, 2017 What determines if a return is Married Filing Jointly or Married Filing Separately? The simple answer is when two individuals are married on the last day of the year and both sign the return, it is a joint return. However, as a recent court case illustrates, sometimes the answer is not that simple. The taxpayer was legally married to his wife on the last day of 2013. The couple had two minor

Summary Cross References - Notice 2017-54 Each year the IRS updates the special per diem rates for taxpayers to use in substantiating the amount of ordinary and necessary business expenses incurred while traveling away from home. These special per diem rates apply to the following: - The special transportation industry meal and incidental expenses (M&IE) rates, - The rate for the incidental expenses only deduction, and - The rates and list of high-cost localities for pu