Top Accounting Firms In Chicago Talk About The Best Tax Laws!

Accounting Firms in Chicago: The Best Changes in Tax Law!

Accounting Firms in Chicago is the place of gathering during the tax seasons. People get excited as in genuinely ecstatic to tread through the ever-changing deductions and tax rate schedules that do reiterated through annually. But ‘excitement’ isn’t one of the best word that we at the Accounting firms in Chicago would like to use. Although we still take pride ourselves on the work and dedication that our team. And we take into ensuring that our fellow clients receive the most compact, supportive and fast service that Chicago has to offer.

Based on our researches about all our clients at the top accounting firms in Chicago. We have chosen to follow up and compile a list that would help. And provide our fellow follower with a more comprehensive information based on what is to be expected for the upcoming 2017 tax season. As per our briefing and prediction, there will be a number of changes, with a higher than the 50 different tax provisions being affected by adjustments to inflation. Some of which will be instructed below:

First and for most, big accounting firms in Chicago have confirmed that the structure of the tax rate that was experienced during the year of 2016 hasn’t changed. And they are still floating somewhere between ten and 39.5 percent. Whereas, there has been an effective increase in the thresholdsof the Tax-Bracket for each filling status. And Inflation has led to a positive trend with personal exemptions and the standard deductions. This is one of which was explicated in the article here about the public accounting firms in Chicago.

American Taxpayer Relief Act recently fixed The AMT (also called the Alternative Minimum Tax) and have placed in a new clause. This one allows the use of non-refundable personal credits as a counter-measure against it. There was an increase form 2016’s $53,900 and $83,800 to $54,300 for a single person and $84,500 for couples filling in together.

There is a HSAs (also called the Health Savings Accounts) that are typically utilized to pay for current or medical expenses in the future for anyone who is eligible for them. The main prerequisite for their payments or the expenses are that they cannot be reimbursed by any insurance companies or other entities. Unless pertaining to dental or a vision care, accidents, disability or long term cure. Any individual covered with a HDHP(that is a High Deductible Health Plan) can qualify as shared by the top accounting firms in Chicago.

A qualifying High Deductible Health Plan (HDHP) in the year 2017 must have a deductible of $2,600 for families or $1,300 for self-coverage. And it also has a limited annual self-induced expenses of the beneficiaries as shared by the big accounting firms in Chicago. A penalty of $695 would be obtained for not maintaining minimum essential health coverage.

From 2017 onward, the same amount will be needed to reduce the net unearned income on a child’s return. That is privy to the ‘kiddie tax’, prior to the previous year. The following amount will also be applied to determine whether or not parents are eligible to elude a child’s income within the parent’s gross income. This is as per one of the public accounting firms in Chicago.

There is an increase for foreign earned income exclusion from 2016’s $101,300 to $102,100. Whereas, the net unearned income for a child under nineteen that isn’t subjected to ‘kiddie tax’ is $2,100, as showed by the top accounting firms in Chicago.

From the year 2013, Medicare taxes have increased, with an additional 0.9 percent which are applied for the people who has wages above $200,000. This will remain in full effect in the year 2017, also will the 3.8 percent Medicare tax on investment income for single taxpayers. This is also with their adjusted gross incomes of more than $200,000 as shared by the public accounting firms in Chicago.

PEP (Personal Exemption Phase-out) and Pease (Limitations on itemized deductions) were extended and adjusted for inflation for taxable years starting for year 2013. In the year 2017, it will affect taxpayers with incomes above $261,500 and $318,800 for married couples. There were also an increase in tax exclusion included for inherited estates from $5,490,000 to $5,450,000. While the maximum tax rate haven’t changed and will remain forty percent. And also the annual exclusions pertaining to gifts still rests at $14,000, shared one of the big accounting firms in Chicago.

We hope that this brief information on tax season will be a guide to many clients, since the tax season are around the corner. Many of you would be excited to visit the top accounting firms in Chicago. You can contact us at GLG Accounting too, where the services are not only the best. They are also highly affordable. If you have any further questions or any doubts or confusion on the following information, feel free to give us a call. Visit us at more information today!