Retirement plan contribution limits are indexed for inflation, but with inflation remaining low, most of the limits remain unchanged for 2017. If you aren't maxing out your contributions already, though, you still have the opportunity to save more in 2017. Learn more in this blog post.
The 21st Century Cures Act, signed into law on December 13, 2016, includes good news for small businesses that have been prohibited in recent years from providing their employees with HRAs. Specifically, beginning January 1, 2017, qualified small employers can use HRAs to reimburse employees who purchase individual insurance coverage, rather than providing employees with costly group health plans. This article explains why small employers were unable to offer “standalone” HRAs to employees and details the new QSEHRAs.
If you don’t make a 2016 Coverdell Education Savings Account (ESA) contribution by December 31, the opportunity will be lost forever. Contributions aren’t deductible, but ESAs can grow tax-deferred and withdrawals used for qualified education expenses (not just for college, but also for elementary and secondary school) are tax-free. Learn more about the rules surrounding ESA contributions and how they can help you save for education in our latest blog post.
The 2016 gift tax annual exclusion allows you to give up to $14,000 per recipient tax-free without using up any of your lifetime gift tax exemption. The assets, including any future appreciation, are removed from your taxable estate. But you need to use your 2016 exclusion by Dec. 31 or you’ll lose it. Learn more in this blog post.
The year is quickly drawing to a close, but there’s still time to take steps to reduce your 2016 tax liability — you just must act by December 31. This article details six actions to take before year's end.
The IRS has again extended the deadline for employers subject to the ACA information reporting requirements to meet their obligations to employees, but only by 30 days, from January 31, 2017, to March 2, 2017. And the deadline for filing the required information reporting forms with the IRS has not been extended. This article explains the ACA’s information reporting requirements and the deadline extension, as well as some penalty relief that’s available.
Can you pay bonuses in 2017 but deduct them this year? Maybe, if the bonuses were earned in 2016 and are paid within the first 2½ months of 2017 (assuming you’re a calendar-year company). Learn more about the requirements for bonus deductions in this blog post.
Planning on claiming year-end donations on your tax return? To ensure charitable donations will be deductible on your 2016 return, you must make them by Dec. 31. Learn more about conditions and rules that apply to deducting charitable donations in our latest blog post.
Section 179 expensing allows businesses an immediate deduction for the cost of eligible asset purchases, rather than depreciating them over a number of years. If you want to benefit on your 2016 taxes, there's still time to do so by purchasing business assets. Learn more in this blog post.
Accrual-basis taxpayer? One way to save tax is to properly record and recognize expenses that were incurred this year but won’t be paid until 2017 so you can deduct them on your 2016 tax return. Common examples include commissions, salaries, wages, payroll taxes, advertising, interest, utilities, insurance and property taxes. Learn more in our latest blog post.