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The IRS released 2017 adjustments to more than 50 tax provisions as well as providing updated tax rate tables for individuals, estates and trusts (Rev. Proc. 2016-55). These revisions will be used for both tax preparation for 2017 and tax year reporting due in 2018. The bullets below are highlights from the list that would be of interest to a majority of taxpayers.
For the standard deduction for married taxpayers filing joint returns increased slightly to $12000, a $100 increase over 2015 and 2016. Single and married taxpayers filing separately will also see a slight increase to $6,350. Heads of household will also see a bump from $9.300 to $9350.
The highest tax bracket of 39.6% saw a moderate increase from $466,950 to $470,700 per year. Single taxpayers are subject to the 39.6% tax rate on income over $418,400, an increase of $3,350 over 2016.
The maximum earned income tax credit amount for 2017 is $6318 for taxpayers filing jointly who have three or more qualifying children, up from a total of $6,268 of 2016.
The Alternate Minimum Tax exemption amount for tax year for 2017 is $54,300 and begins to phase out at $120,700 ($84,500 for married couples filing jointly for whom the exemption begins to phase out at $160,900).
FSA Contribution increases from $2550 to $2600, Carryover rates remain the same at $500.
Transportation accounts which apply to transportation in a commuter highway vehicle and any transit pass continues to be limited to $255 per month. Parking remains at $255 per month.
Health Savings Accounts will see a $50 increase to a maximum of $3,400 annually. Family contribution limits remain the same for 2017 at $6,750.
‘High Deductible Health Plans (HDHP) as defined under 223©(2)(A) as a health plan with an annual deductible that is not less than $1,300 for self-only coverage or $2,600 for family coverage, and the annual out-of-pocket expenses (including deductibles, co-payments, and other amounts, but not premiums) do not exceed $6,550 for self-only coverage and $13,100 for family coverage.”
The penalty for not having essential health insurance remains at $695.
There are of course, more changes than what’s posted here, so please talk with us for a more in-depth conversation about your specific tax situation.
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LILIANE LARSEN, OWNER
In 2001, Liliane Larsen started her own successful contract bookkeeping company for businesses in the Boston and South Shore area. Liliane has the equipment and capabilities to complete your work virtually from her own office, or she can work at your location.
She helps businesses accurately manage their books and prepare them for tax filing. Clients have praised Liliane for her technical and practical knowledge as she has created streamlined bookkeeping systems for them that have replaced conventional, painstaking record keeping methods with an improved and current process that is efficient, time-saving and precise.
You can feel confident that you will be working with a trustworthy professional who concentrates on attention to detail, follow-through, and keeping your records 100% accurate and current. Liliane will be part of your team.
Liliane received her Bachelor of Arts Degree in International Business from Iona College in New Rochelle, NY. Following college, she worked at Citibank, NA in New York City in the Private Banking Division and the International Private Banking Division on their Brazil/Portugal desk. After leaving Citibank, Liliane was the 2nd Vice President in the Private Banking Department at Chase Manhattan Bank in New York City.