2017 Tax Return Information
Thank you for your past patronage. I am listing my hours, along with information regarding the documents needed to prepare your return, on a separate card enclosed in this letter. I ask that you bring with you last year’s tax return, along with any documents you have always brought to us.
We are all aware Congress has made some significant changes to the tax laws in the last month of 2017; however those changes have little to no effect on the 2017 returns we will be filing on your behalf this season. There are a few changes to the tax laws this year. Below is a list of changes that will have the most effect on my clients;
1) New York - Driver's License/ State-Issued ID Requirement: Once again New York State will be requiring a New York State issued license or ID, or license or ID issued by another state in order to file a return. (Joint tax returns require this information for both taxpayer and spouse.)
2) Dependents: In order to take a deduction for a dependent, or any of the credits associated with dependents, we will need to have a social security card and birth certificate for the dependent.
3) Standard deductions will be increased as follows: $6,350.00 for single taxpayers and married filing separate, $12,700.00 for married couples filing jointly, and $9,350.00 for head of household.
4) Traditional and Roth IRA phase-outs will be adjusted higher: For those investing in Traditional IRA the phase-out range for taking this deduction rose by $1,000. The new limits are $62,000 to $72,000 for single taxpayers, and $99,000 to $119,000 for married couples filing jointly. For those investing with a Roth IRA the individual phase-out to be able to contribute rose $1,000 for single filers to a range of $118,000 to $133,000, while it jumped $2,000 for married couples filing jointly to a range of $186,000 to $196,000. In other words, a few extra people should be able to contribute to a traditional or Roth IRA in 2017 because of these modest increases.
5) Medical expense deductions will change for certain seniors: For all Americans in 2017, your medical expenses would have had to surpass 10% of your adjusted gross income (AGI) before you could take a deduction. However, as part of the new tax package the amount was lowered to 7.5% of your adjusted gross income (AGI) for 2017 and 2018.
6) Education Credits: Taxpayers will not be allowed to claim the American Opportunity Credit, the Lifetime Learning Credit, or the tuition deduction unless the taxpayer has received a form 1098-T from the educational institution. This means that you must have the 1098-T before we can file your return.
7) Student Loan Interest Deduction: The most student loan interest you can claim as a tax deduction is limited to $2,500 this year. The deduction is also limited by your income—it's reduced for taxpayers with modified adjusted gross incomes in a certain phase-out range and it's eventually eliminated entirely if your MAGI is too high. The phase out range for single taxpayers starts at $65,000 and completely phases out at 80,000, married tax payers range from 130,000 to 160,000.
A final note to best serve you, try to make an appointment or send in your information as early as possible. Keep in mind that again this year the returns are more complex and there are many things to be considered. If you have any questions give us a call at 718-745-6116. As usual we thank you for your business in the past and look forward to working together for many years to come. Thank you.
Daniel F. Magrino and Staff
|Jan 29th - April 9th||
Monday, Wednesday, and Friday Evenings 6pm to 9pm
Saturdays 10am to 4pm (closed Tuesday & Thursday Evenings)
|April 11th - April 13th||Open 9am to 8pm|
|April 14th, Saturday||Open 10am to 4pm|
|April 15th, Sunday||CLOSED|
|April 16th, Monday||Open 9am to 8pm|
|April 17th, Tuesday||Open 9am to 6pm|
|Last year's tax return||Socical Security cards and Birth Certificates for all dependents||Purchase and sale information for anything sold during the year|
|All other statements of income||Donations of property to charity||Donations of money to charity|
|W-2 forms for wages||IRA year end statements||Volunteer/Business expenses and mileage|
1099 forms for interest, dividends, retirement, social security,Unemployment, and other income
|Medical expenses||Amounts paid for higher education form 1098-T|
|Year end statements from mutual funds||Records of estimated taxes paid||Job related expenses|
K-1 forms from partnerships, corporations, and estates
|Property tax statement||Investment related expenses|
|Rental or self employment income
|1098 forms for mortgage or student loan interest, along with receipts for college tuition||Child care provider's name, address, social security number, and amount paid|