Mileage rates to decrease in 2017

Mileage rates to decrease in 2017
The Internal Revenue Service announced that the optional standard mileage rate used to calculate the cost of operating a vehicle for business purposes will decrease a half-cent in 2017, to 53.5 cents per mile.

The rate for moving or medical travel expenses will also decrease. The new rate of 17 cents per mile is two cents lower than the 2016 rate.

The allowable rate for miles driven in service of charitable organizations is still 14 cents per mile.

Instead of using these rates, taxpayers have the option to calculate the actual expenses incurred when using personal vehicles.

If a taxpayer has taken a Section 179 depreciation deduction on a vehicle or is a fleet owner, standard mileage should not be used. Contact your WK advisor at (573) 442-6171 or (573) 635-6196 for guidance in those situations.


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2017 mileage rates

NEW FICA WAGE LIMIT FOR 2017. The new wage limit that is subject to the federal Old-Age, Survivors, and Disability Insurance (OASDI) has increased to $127,200 for the 2017 tax year, up from $118, 500 in 2016. Also known as Social Security, this program taxes all workers who have earned income, such as payroll wages or self-employment income.
REMINDER: 2015 LAW CHANGES TAX RETURN DATES FOR C CORPORATIONS, PARTNERSHIPS, AND MORE. A law signed by President Obama last year changed the due dates for certain 2016 tax returns that will be filed in 2017. Entities affected by the new deadlines include partnerships and C corporations, as well as those that file FinCEN Form 114, Report of Foreign Bank and Financial Accounts, and several other Internal Revenue Service information returns.
NEW FORM I-9 EFFECTIVE JANUARY 22, 2017. The White House Office of Management and Budget approved the latest revisions to the Form I-9, which is used to verify that an employee is eligible to work in the United States, in August 2016. The form contains new electronic features and other changes.

Posted 12-21-2016 | Topics: Client Alerts, News,

Our thoughts and prayers are with all of our clients, friends and the communities across the state of Missouri impacted by the storms, tornadoes and flooding that have hit our state.
Our collective resolve will carry us through the coming months as we work to restore what was lost.