2018 Standard Mileage Rate

Beginning on Jan. 1, 2018, the standard mileage rates for the (business) 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.

Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.

A taxpayer may not use the business standard mileage rate for a vehicle after using any depreciation method under the Modified Accelerated Cost Recovery System (MACRS) or after claiming a Section 179 deduction for that vehicle.

Please get important details on IRS.gov.

Forms 1095 B & C – Due Dates Coming Up

If you are an employer subject to the Affordable Care Act’s (ACA) information reporting requirements, please mark your calendar. The deadline to furnish Forms 1095-B and 1095-C to employees is March 2, 2018.

Form 1095-B is for self-insuring employers that are not considered ALEs, and other parties that provide minimum essential coverage.

Form 1095-C is for applicable large employers (ALEs)—generally those with 50 or more full-time employees, including full-time equivalents.

Small Business Health Care Credits

The IRS has released Form 8941, Credit for Small Employer Health Insurance Premiums, and related instructions, for tax year 2017. Eligible small employers will use this form to figure their credits for health insurance premiums under the Small Business Health Care Tax Credit.

The small business health care tax credit benefits employers that:

  • Have fewer than 25 full-time equivalent employees
  • Pay average wages of less than $50,000 a year per full-time equivalent (indexed annually for inflation beginning in 2014)
    • For tax years 2015 and 2016, the inflation-adjusted amount is $52,000
  • Pay at least half of employee health insurance premiums

Please review this article for more information.

IRS Announces 2018 Pension Plan limitations

Highlights of Changes for 2018

The contribution limit for employees who participate in 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan is increased from $18,000 to $18,500.

Please read the full article here.