We are closing in on the 180-day claim period for the 2017 Biodiesel and Alternative Fuel Incentives so we wanted to add transparency to those dates and what you need to know. The IRS has recently issued Notice 2018-21 which provides rules claimants must follow to make a one-time claim for payment of the credits and payments allowable under Sec. 6426(c), 6426(d), and 6427(e) of the Internal Revenue Code for biodiesel mixtures and alternative fuels sold or used during calendar year 2017. These incentives had expired as of December 31, 2016, but were retroactively extended through December 31, 2017 as part of a bill that was passed on February 9, 2018. Claimants that filed “protective” or anticipatory claims during 2017 for biodiesel Read More...
Archives for March 2018
The “Fix” Is In! A Revision To Sec. 199A Has Been Made
As of today, March 23rd, 2018, the revision of Sec. 199A has been signed. The omnibus government-funding bill recently proposed in the House of Representatives contains amendments to Section 199A. Specifically, the proposed legislation amends the definition of “qualified business income (QBI)” by striking the exclusion for “qualified cooperative dividends.” This amendment replaces the current law QBI deduction with a deduction for qualified production activities income. That is similar to the pre-2018 DPAD. The effect of the amendment is to change the farmer’s deduction to equal 20% of taxable income or qualified business income (including cooperative dividends in the computation). Limitations remain in place for farmers with high Read More...
Do my Children Qualify for the Child Tax Credit?
At Christianson, we often get similar questions from our clients that we feel should be addressed on a larger scale. We believe that the question may be something that is asked universally, and not just in our office. The Child Tax Credit is a topic of discussion, especially now that the recent Tax Reform Bill has made a modification to the credit amount. Changes Taking Place in 2018 Under the Tax Cuts and Jobs Act, the Child Tax Credit will change as outlined below per the IRS. Please note that the qualifiers are listed below the changes so you know who may be eligible for this credit. The CTC has gone up to $2,000 per qualifying child as opposed to the previous credit of $1,000. The refundable portion is limited to $1,400. This Read More...
Sec. 199A “Grain Glitch” Fix Proposed
Sec. 199A "Grain Glitch" Fix Proposed In January, we announced a change in the Tax Reform Bill that had a very large impact on the agriculture industry, with the heaviest of the impact placed on cooperatives and private grain firms. This change was Sec. 199A. A few weeks after sharing that article, while anxiously anticipating change (but preparing nonetheless) we published a "next steps" article. It was finally announced on Tuesday this week that House and Senate lawmakers have come to an agreement that a portion of Sec. 199A must undergo a revision. The original version of Sec. 199A (the portion about the deduction based on the sale to cooperatives) was added very last-minute and lawmakers have addressed that it was an admitted Read More...
Deadline for Retirement Plan Distributions Approaching!
When do I have to Take My My First Retirement Plan Deduction? After you turn 70.5, you typically start receiving the required minimum distributions (RMD) from your retirement plans, individual retirement accounts (IRAs), and from employer-provided retirement plans. If you turned 70.5 in the year 2017, we want to remind you that APRIL 1st is the deadline to take the first of your required retirement plan distributions. What Employer-Sponsored Plans are Included The answer is simple: ALL employer-sponsored retirement plans are included in this Sunday, April 1st deadline. This includes: Profit-sharing plans 401(k) plans 403(b) plans 457(b) plans. The RMD rules also apply to traditional IRAs and IRA-based plans such as: Read More...
IRS Lowers 2018 Family HSA Contribution Limit by $50
The IRS has released a change to HSA contribution limits linked to family coverage for 2018 that will impact anyone with a high-deductible family plan who is making the maximum contribution to their HSA account. What do the HSA Contribution Limits Look Like Now? In 2018, the HSA contribution limit linked to family coverage, which was originally set as $6,900, has been reduced to $6,850. This was recalculated due to the Tax Cuts and Jobs Act that was passed in 2017 which applies the chained CPI (Consumer Price Index) to increase HSA and other contribution limits. According to SHRM, in its Internal Revenue Bulletin No. 2018–10, released March 5, the IRS clarified that: For HSAs, the annual tax-deductible contribution limit for tax Read More...
2018 Tax Filing Deadline on April 17th
We wanted to share a gentle reminder that the tax filing deadline this year has once again shifted away from April 15th. When is the Tax Filing Deadline? For individual taxes, the final date to file your taxes is Tuesday, April 17th, 2018. This goes against the traditional April 15th deadline for individual tax returns. The shift is due to April 15th falling on Sunday as the tax deadline cannot land on a Sunday. Also, since Monday April 16th is Emancipation Day (which is a legal holiday for the District of Columbia), the filing deadline will be pushed to Tuesday, April 17th, 2018. This gives you a couple of extra days to meet the deadline. Where's My Refund? Once taxes are filed, a common question we get is "where is my refund?". The Read More...
Ask The Experts – New Tax Laws for Small Businesses
Ask The Experts Segment On Monday, March 5th, Joel Gratz, Partner here at Christianson joined Bill Dean on KWLM during the "Ask the Experts" segment. This month, Joel and Bill took a minute to chat about the new tax laws and how they may impact small business owners. As Joel mentions during the segment, completing your 2018 taxes will prove to have additional nuances. Some that you may not have faced during your 2017 tax appointment (especially if you are a business owner). How Can I Listen? Tune in to 1340 AM or 96.3 FM (or live stream if you are outside of the listening area) the first Monday of every month from November until April (during tax-time) at 9:10am CST. You can listen to the March segment and other Ask The Expert Read More...
IRS Withholding Calculator
IRS Withholding Calculator How well do you know your paycheck and what is being deducted from it? With major changes in 2018 tax laws, the IRS is encouraging taxpayers to do a paycheck double check to ensure you're having the appropriate amount of taxes withheld. You can do this by simply using their handy Withholding Calculator! Why Should I Check My Withholding? Many taxpayers are wondering why they should take the time to double check their withholding amount and the answer is simple: This will help protect against having too little tax withheld and having to pay in when you file your taxes next year. Also, you may prefer to have less tax withheld up front and receive more in your paycheck. How Do I Use The Read More...
199A Coop Deduction – What Do I Do Now?
199A Coop Deduction - What Do I Do Now? In January, we posted about the 199A Deduction Impact on Cooperatives which was announced with the new Tax Reform Bill. It left many wondering "what do we do now?". Most of the discussion surrounding this new 199A tax law focuses on explaining the effect and how the deduction works. Once you understand the tax effect on coop suppliers, what’s next? Do non-coop purchasers form coops or do they wait and see if this gets “fixed?” This has been a sudden and important change that affects many business. We often get caught up in the discussion and trying to figure out if Congress is going to change this or not, when we should instead be focusing on gathering the facts, identifying the risks and Read More...