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Tax Credits for Education

Are you paying for higher-education for yourself or a dependent? Don't overlook the tax credits offered by the IRS.

There are two credits available to help taxpayers offset the costs of higher education:  The American Opportunity Tex Credit and the Lifetime Learning Credit. 

Employer Credit for Family and Medical Leave

Employers who provide paid family and medical leave to their employees might qualify for a credit that can reduce the taxes they owe. Here are some facts about the credit to help employers determine if they are able to claim it.

To be eligible, an employer must:

Have a written policy that meets several requirements. Provide: 

Small business owners should revisit the amount of estimated tax payments

If you pay quarterly estimated tax payments, you may want to revisit the amount you pay.

The Tax Cuts and Jobs Act changed the way most taxpayers calculate their tax. These taxpayers include those with substantial income not subject to withholding, such as small business owners and self-employed individuals. The tax reform changes include:

2018 Tax Tip: Charitable Contributions & Medical Expenses

 

The new tax law, effective after 2017, and how it affects Charitable Contributions and Medical Expenses:

 

Charitable Contributions

- The 50% limitation under Code Sec. 170(b) for an individual’s cash contributions to public charities and certain private foundations is increased to 60% for cash contributions made in 2018 through 2015.

Tax reform and the child tax credit

What changed?

- The new law increases the child tax credit from $1,000 to $2,000.

- Eligibility factors for the credit have not changed. As in past years, a taxpayer can claim the credit if all of these apply:
     • the child was younger than 17 at the end of the tax year
     • the taxpayer claims the child as a dependent
     • the child lives with the taxpayer for at least six months of the year

100% Depreciation Deduction For Businesses

One of the changes brought about by Tax Reform legislation passed in December 2017 allows businesses to write off most depreciable business assets in the year they place them in service.

The 100% depreciation deduction generally applies to depreciable business assets with a recovery period of 20 years or less and certain other property. Machinery, equipment, computers, appliances and furniture generally qualify.

Tax Tips, Resources & News

Our blog, news feeds, forms, and links to helpful resources are provided to help you find the answers you seek any time of the day or night.  Please call us at 330-779-0781 for assistance.  We're here to guide you through your business and personal accounting and tax questions and obligations.

Contact

  • Address:DJL Accounting & Consulting Group, Inc.
    Cider Mill Professional Center, Building C-102
    1570 S Canfield Niles Road
    Youngstown, Ohio 44515 
  • Phone:330 779 0781