This page summarizes important changes in tax.  It is constantly being updated with the newest laws and regulations so check back often for updates!  Also check out our "Quick Reference" page for commonly used rates and limits.

IDeal 529 College Savings Accounts - 5/8/17

Did you know that you can save for college and qualify for an Idaho income tax deduction?  You can contribute up to $6,000 individually ($12,000 for joint filers) and potentially save up to $444 in state taxes per year ($888 for joint filers). CLICK HERE to learn more about the new Idaho income tax deductions limits for 2017.

Highlights of "Protecting Americans from Tax Hikes" (PATH) Act - 12/21/15 

In the "Protecting Americans from Tax Hikes" (PATH) Act that was signed by President Obama on 12/21/15, many of the the previously expired tax extenders were made permanent.  One of these tax extenders made permanant was the $500,000 Section 179 expense deduction for the purchase of equipment in a business.  This will allow small businesses to effectively plan end of year equipment purchases without worrying if they will be able to fully expense the equipment in the year of purchase.  For a more in depth look at the PATH Act, please CLICK HERE.

Idaho—Income Tax: Guidance Issued on IRC Conformity (2014 tax year)

 For corporate and personal income tax purposes, the Idaho State Tax Commission has issued guidance regarding the state’s conformity legislation, which was signed by Governor C.L. “Butch” Otter on February 23, 2015. Under the recently enacted legislation, Idaho law conforms to the Internal Revenue Code (IRC) as of January 1, 2015. Once Idaho conforms to the IRC, it follows the federal effective date of any federal changes adopted, including any retroactive dates. According to the State Tax Commission’s guidance, Idaho conforms to the IRC §179 expense provisions; however, the state does not conform to bonus depreciation provisions. Taxpayers can claim the IRC §179 expense on the Idaho income tax return to the extent that the deduction can be claimed on the federal income tax return. Additionally, since Congress extended the federal provisions for the general sales tax deduction, as well as tuition and related expenses, taxpayers can report a deduction for state and local sales tax on Form 40, line 14, or Form 43, line 34, and qualified tuition and related expenses on Form 40 (these items will be part of federal adjusted gross income) or Form 43, line 22. Finally, the guidance notes that the state conforms to the new federal repair regulations, but does not require documentation of that change, other than what is required at the federal level.

Special Report - Tax and Financial Planning for Baby Boomers  

Released 2/4/15 - Fiscal Year 2016 Budget Proposals

Click here to read about the :  2014 Tax Year in Review

Tax Increase Prevention Act of 2014

Congress acted at the end of 2014 to extend many provisions of the tax code.  These are mostly in the benefit of the taxpayer.  Details can be found here.

New Obamacare Taxes

Be aware that starting in 2013 there will be an additional 0.9% Medicare tax added to earned income in excess of $200,000 for single taxpayers and $250,000 for married filing jointly.

There will also be a new 3.8% Medicare tax assessed on unearned income at the same levels.  This would cover investment income such as dividends, interests, royalties, rent, annuities, or other investment gains.

Small Business Health Insurance Credit

If you provided health insurance to your employees and meet the criteria, you may qualify for a tax credit.  To qualify you need less than 25 employees and must pay over 50% of the cost of the health insurance.  If you think you may qualify, contact us to find out more or we will discuss it when we do your business taxes.