The Tax E Man Blog is a publication of Baldwin NY Tax Preparation and Representation firm Pat Tax Inc. Pat Tax and Enrolled Agent Patrick White provide tax consultation, preparation, and representation services to the Long Island communities of Baldwin NY, Freeport NY, Roosevelt NY, Uniondale NY and Hempstead NY and the Queens communities of Saint Albans NY, Cambria Heights NY, Laurelton NY, and Springfield Gardens NY.

Visit us at http://www.PatTax.net for the latest tax preparation tools and information. We can be contacted at PatTaxHelp@gmail.com or mobile: 917 533-8475.

 

High-Income Taxpayers

In addition to being subject to higher federal tax rates, taxpayers whose income exceeds certain levels have tax deductions and credits that are reduced or eliminated. The provisions listed may have additional qualifications and restrictions. Other provisions of the tax code, such as fringe benefit limitations and taxation on the sale of a principal residence, may further restrict a taxpayer’s ability to take deductions or cause the taxpayer to pay additional tax. Ask your tax professional for more details.

Capital Gains Tax Rates

Long-Term Capital Gain Maximum Tax Rates
For taxpayers with ordinary tax rate of	2013 and After
Top rate	20%
25% to rate below top rate	15%
10% or 15%	0%

Qualified Dividend Income Tax Rates
For Taxpayers with ordinary tax rate of	2013 and After
Top rate	20%
25% to rate below top rate	15%
10% or 15%	0%

 

Read High Income Taxpayers 2017 Here

 

 

2017 Itemized Deduction Phase-out

Itemized deductions begin to phase out when
Filing Status	Modified Adjusted  Gross Income
Married Filing Jointly, Qualifying Widow	$313, 800
Head of Household	$287, 650
Single	$261, 500
MFS	$156, 900

2017  Personal Exemptions

The personal exemption per is -$4,050

Personal exemption’s  phase-out with the following AGI amounts.
Filing Status	AGI Beginning of Phase-out-AGI Completed Phase-out
Married Filing Jointly, Qualifying Widow	$313,800-$436,300
Head of Household	$287,650-$410,150
Single	$261,500-$384,000
Married Filing Separately	$156,900-$218,150

 

Read High Income Taxpayers 2017 Here

 

Any accounting, business, or tax advice contained in the Tax E Man Blog or http://www.PatTax.net, including attachments, links, and enclosures, are not intended as a thorough in-depth analysis of specific issues, nor a substitute for a formal opinion, nor is it sufficient to avoid tax related penalties.

If desired, Pat Tax Inc. would be pleased to perform the requisite research and provide you with a detailed written analysis. Such an engagement may be the subject of a separate engagement letter that would define the scope and limits of the desired.

The Tax E Man Blog, along with our website http://www.PatTax.net, are designed to be year round resources for tax consultation, preparation and representation services provided by Pat Tax Inc. . Please feel free to contact us with any questions or concerns.

Pat can be contacted at 347 949-8293 or email: PatTaxHelp@gmail.com.

 

 

 

Expense and Tax Tracker on the Go-Get the Tax E Man App

Need a handy mobile expense and tax organizing tool ? Give the free Tax E Man App a try !

It’s time again to organize all of those expense and tax documents. Keeping complete records helps in preparing the most accurate tax returns and decreases the possibility of being the target of an IRS audit.

The Tax E Man App for Android and iPhone makes your phone, iPad or Android device a “personal assistant”, collecting, organizing, storing and sending your yearly tax records.

The App, available under the Tax Pocket general app, was developed by App Giraffe in collaboration with the National Association of Tax Professionals. The Tax E Man App has been customized by Enrolled Agent Patrick White of Pat Tax Inc. And is provided free of charge.

Features

1. Tax Organizer
2. GPS Mileage Tracker
3. My Tracker-allows for specific tracker creation and customization such as business, medical and childcare expenses
4. Organizer and tracker information can be downloaded securely and displayed on spreadsheets or quick books.
5. Transmit information securely to your tax preparer
6. Contact information and office schedule
7. http://www.PatTax.net website access, filled with tax preparation tools and information.

Download Instructions

1. Visit www.TaxPocket.com here.

2. On bottom of page, choose Google Play for Android devices and Apple Store for iPhone or iPad
3. Download TaxPocket App-it is free.
4. On top of the next page, next to “Tax Professionals”, tap magnifying glass which is search icon.
5. Under Search by Zip Code, enter 11510
6. Select Patrick White
7. Select “Make This my Tax Professional”.
8. You Got It !! Thanks !

The Tax E Man Blog, along with our website http://www.PatTax.net are designed to be year round resources for tax consultation, preparation, and representation services provided by Pat Tax Inc., Please feel free to contact us with any questions or concerns.

Pat can be contacted at 347 949-8293 or email: PatTaxHelp@gmail.com with any questions or concerns.

 

 

Tax Treatment of Fringe Benefits

The term “fringe benefit” refers to any benefit provided to an employee that is in addition to money. All benefits provided to an employee are taxable unless the law specifically excludes or defers tax on the benefit. Thus, a fringe benefit can either be taxable, tax-deferred, or excluded from taxation.

 
The personal use of an employer-provided vehicle is an example of a taxable fringe benefit. An employer contribution to a qualified retirement plan on behalf of the
employee is an example of a tax-deferred fringe benefit. Employer-provided health insurance for an employee is an example of a tax-free fringe benefit.

 

 

Business Owner

A small business owner in a corporate setting may be both the owner and an employee of his or her business. By taking advantage of excludable fringe benefits, the owner receives a double benefit. First, the cost of the benefit is deductible by the business. Second, the cost
of the benefit is tax free to the employee-owner.

 

 

Read 2016 Fringe Benefits Here

 

 

Nondiscrimination Rules for Fringe Benefits

Nondiscrimination rules are designed to prevent business owners from offering tax-favored fringe benefits to themselves but not their employees. In general,
if fringe benefits are offered to all employees, then all employees, including the top paid employees, receive tax-favored treatment on employee benefits. However, if a plan favors highly-compensated employees or key employees, the value of the benefit must be included in their taxable wages. The terms highly-compensated employees and key employees can mean different things depending on the applicable plan. Special restrictions apply for fringe benefits for sole proprietors, partners, certain LLC members, and S corporation shareholders.Consult your tax advisor if you are a business owner
considering providing fringe benefits to yourself and your employees.

 

 

Employer-Provided Vehicles

 

If an employer provides an employee with a company owned vehicle, and the employee uses the vehicle for personal purposes, the value of that personal use must be included as taxable income on the employee’s Form W-2. Under the general rule, the taxable amount equals the fair market value of the total use, minus the amount the employee pays for the use.

 

 

Employer-Provided Cell Phones

The value of an employer-provided cell phone, provided primarily for non-compensatory business reasons, is excludable from an employee’s income.

Non-compensatory Business Purposes

An employer needs substantial business reasons for providing the cell phone. Examples include:

•  Need to contact the employee at all times for work-related emergencies,
• Requirement that the employee be available to speak with clients at times when the employee is away from the office, and
• Need to speak with clients located in other time zones at times outside the employee’s normal workday.

 

Read 2016 Fringe Benefits Here

 

 

Any accounting business or tax advice contained in the Tax E Man Blog or http://www.PatTax.net, including attachments, links and enclosures, are not intended as a thorough, in-depth analysis of specific issues, nor a substitute for a formal opinion, nor is it sufficient to avoid tax related penalties.

If desired, Pat Tax Inc. would be please to perform the requisite research and provide you with a detailed written analysis. Such an engagement may be the subject of a separate engagement letter that would define the scope and limits of the desired.

The Tax E Man Blog, along with our website http://www.PatTax.net are designed to be year round resources for tax consultation, preparation, and representation services provided by Pat Tax Inc., Please feel free to contact us with any questions or concerns.

Pat can be contacted at 347 949-8293 or email: PatTaxHelp@gmail.com with any questions or concerns.