“My goal is to help ensure small businesses retain the tax benefits to which they are entitled and protect the wealth they have created,” said Mike Hamblin, founder of Contract Controllers CPAs.
To help small business owners prepare to file for upcoming 2017 taxes and make the most of the laws affecting their tax situation, Contract Controllers CPAs lists the following six tips:
No. 1: PATH Act requirements. The Protecting Americans from Tax Hikes (PATH) Act now requires employers to file their copies of Form W-2, submitted to the Social Security Administration, by January 31. The new filing deadline also applies to certain Forms 1099-MISC reporting non-employee compensation such as payments to independent contractors. “Additionally, the new due date for partnership returns is now March 15, instead of April 15,” stressed Mike. “This is a big deal as some may not know that they have less than a month to file them.”
No. 2: Reduced business mileage expenses. In response to lower gasoline prices, the IRS lowered the standard mileage rate for business travel from 54 cents to 53.5 cents. “Keep in mind, however, that taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates,” noted Mike.
No. 3: Expensing of assets increase. “For 2017, this has increased to $510,000, up $10,000 from 2016,” added Mike. “The amount is phased out at over $2 million.”
No. 4: Itemized deductions that are phased out. For 2017, itemized deductions begin to get phased out starting at adjusted gross incomes over $261,500 for singles, $287,650 for heads of households and $313,800 for married filing joint.
No. 5: Social Security wage cap increase. The Social Security Administration announced that the maximum amount of wages in 2017 subject to the 6.2% Social Security tax (old age, survivor, and disability insurance) rose from $118,500 to $127,200, an increase of more than 7 percent.
No. 6: IRA and HSA contributions. “Taxpayers can still make IRA and HSA contributions until the due date of the return plus extensions,” concluded Mike. “However, HSA must be established by the tax filing deadline (without extensions) for the tax year in which your qualifying contribution(s) will apply.”
About Mike Hamblin, Contract Controllers CPAs, P.S.
Mike Hamblin has over 35 years of experience as a CPA and financial controller. He specializes in troubled company turnarounds, tax preparation, controller services and financial statement preparation. Additional services offered by Contract Controllers CPAs include bookkeeping, tax planning and budgeting and cash flow planning. For more information, please call (425) 271-7544, or visit http://www.contractcontrollers.com. The office is located at 326 Union Ave. NE, Suite 5, Renton, WA 98059.
About the NALA™
The NALA offers small and medium-sized businesses effective ways to reach customers through new media. As a single-agency source, the NALA helps businesses flourish in their local community. The NALA’s mission is to promote a business’ relevant and newsworthy events and achievements, both online and through traditional media. For media inquiries, please call 805.650.6121, ext. 361.
