New 2018 Standard Mileage Rate

Beginning on Jan. 1, 2018, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:

  • 54.5 cents for every mile of business travel driven, up 1 cent from the rate for 2017.
  • 18 cents per mile driven for medical or moving purposes, up 1 cent from the rate for 2017.
  • 14 cents per mile driven in service of charitable organizations.

2017 Tax Information

7 brackets: 10%, 15%, 25%, 28%, 33%, 35%, and 39.6%. The  tax you owe depends on your income level and filing status.  The personal exemption amount is $4,050 (same as 2016). Standard Deductions:
Single $6,350
Married Filing Jointly $12,700
Married Filing Separately $6,350
Head of Household $9,350
Qualifying Widow(er) $12,700

There is an additional standard deduction for elderly or blind taxpayers, which is $1,250 for tax year 2017. The additional standard deduction amount increases to $1,550 if the individual is also unmarried and not a qualifying widow(er).

First American Financial Services

We are a family owned and operated accounting and tax firm located in west Tampa, FL.  We provide a full range of accounting and tax services including corporate, partnership, and individual tax returns, financial statements, full and after-the-fact payroll, sales tax, and payroll tax processing.  We pride ourselves on providing personal attention and treating our clients as family.

Jen Kritch is an Enrolled Agent (EA).  What is an EA?  An EA is a person who has passed a three-part comprehensive IRS examination covering individual and business tax returns.  EA status is the highest credential the IRS awards.  Individuals who obtain this elite status must complete 72 hours of continuing education courses every three years.  In other words, EA’s are tax code junkies on steroids that are the only federally licensed tax practitioners who specialize in taxation and have unlimited rights to represent taxpayers before the IRS.

Tax Cuts and Jobs Act (beginning Jan. 1 2018 through Dec. 31, 2025) highlights:

  • New tax brackets 10%, 12%, 22%, 24%, 32%, 35%, and 37%. 
  • Standard deduction increased to $24k for joint filers, $18k for heads of household, and $12k for other filers. 
  • Personal exemptions suspended (eliminated). 
  • State and local property tax deduction limited to $10k (has to be paid in connection with carrying a trade or business).
  • Mortgage interest deduction limited to underlying indebtedness of up to $750k (prior it was $1M). 
  • Child Tax Credit increased to $2k.
  • C corporation tax rate decreased to 21% flat rate (prior was 35% max rate).
  • Pass through income (S corporation, partnership, LLC) receives a 20% deduction of qualified business income, but cannot exceed the greater of (1) 50% of W2 wages or (2) sum of 25% of W2 wages plus 2.5% of unadjusted basis of all qualified property (tangible, depreciable property).  This deduction does not  apply to specific services and investment businesses.
  • AMT retained with higher exemption amounts (joint filers $109.4k, single filers $70.3k, married separate $54.7k.
  • Individual mandate imposed by the Affordable Care Act repealed (no penalty for failure to be covered by a health plan that provide minimum essential coverage).
  • Estate and Gift Tax retained but exemption doubled from $5M to $10M.
  • Deduction for personal casualty and theft losses suspended except if incurred in federally-declared disaster.