Tax Solutions and Business Tips 
for Trucking Professionals
TAX CUTS AND JOBS ACT!
By: Drew Klaus and Betsy Dyer
 
The Tax Cuts and Jobs Act was signed into law by President Trump on December 22, 2017. The purpose of the new tax bill is to amend the Internal Revenue Code to reduce tax rates and modify policies, credits, and deductions for individuals and businesses. Unless specified otherwise, all of these changes will apply to tax years 2018 to 2025. Below are some major changes that will affect over the road truck drivers:
 

Standard Deduction increases per filing status

Single

* Old (2017) amount: $6,350

* New amount: $12,000

Married Filing Separate

* Old (2017) amount: $6,350

* New amount: $12,000

Head of Household

* Old (2017) amount: $9,350

* New amount: $18,000

Married Filing Joint

* Old (2017) amount: $12,700

* New amount: $24,000
 

The Personal Exemption (a $4,050 deduction for each person on the tax return) has been suspended


Deduction for Qualified Business Income

This is a brand new deduction that allows taxpayers with income from a Sole Proprietorship, Partnership, or S-Corporation to possibly deduct 20% of their net income from the business.
 

Note: Sole Proprietorship, Partnership, and S-Corporation are all types of LLCs
 

Child Tax Credit increases

* Old (2017) amount: $1,000 per child

* New amount: $2,000 per child

* Miscellaneous Itemized Deductions are suspended

* This includes form 2106, Employee Business Expenses


***Company drivers will no longer be able to claim per diem and out of pocket expenses as itemized deductions***

 

Alimony Payments

Alimony payments are no longer deductible by the payor


 

Affordable Care Act Shared Responsibility Payment

Currently, a taxpayer is assessed a penalty on their tax return if they do not have minimum and essential health insurance the whole tax year.

Under the new law, the penalty is suspended. This suspension does not take place until the 2019 tax year.

 

Here is an example of how the Tax Reform could affect you:
 


If you have any question or would like to participate in our estimate program, please contact Abacus CPAs at 417-380-5000. 

On the Road Recipes!
Crock Pot Ham

Ingredients
7-9 lb ham
20 ounce can of pineapple rings
2 cups of brown sugar
 

Directions
Spread 1 1/2 of the brown sugar on the bottom of the crock pot.  Put the ham flat side down on the brown sugar.  Rub remaining brown sugar on the ham.  Place pineapples on and around the ham.  Cook on low for 8 hours or high for 4 hours.  Enjoy!

As our busiest time approaches, we thought it was a good time to remind you about our SECURE online portal in which you can submit documents for us and we can submit documents for you.  Below is HOW TO access:
 
Abacus Access
You can access this online portal by going to abacuscpas.com, and then clicking the green button labeled "Abacus Access" on the home page. Much like email, an Abacus Access user will have a specific username and password associated with their account.
Uploading Documents:
After logging into Abacus Access, the user can upload documents by clicking "File Exchange", then clicking the folder labeled "Upload your files here", and then clicking the upload button. After clicking the upload button, a pop-up box will appear enabling the user to add their desired files. Once the user has added their desired files, the last step in uploading the files is clicking the "Start upload" button on the pop-up box.
To Access Your Tax Return:
In order to access an electronic copy of the user's completed Tax Return, simply click the "File Exchange" button. After clicking File Exchange, the user will see a folder labeled "Tax Return 20XX" which is where their Federal and State Tax Returns will be stored.

Below are the clients with whom we are celebrating a big anniversary of working together!  We appreciate you and your continued trust in us!

Celebrated 5 Years in December!
Michelle M. Brewer
Jaimie N. Batson
Ronald Dart
James P. Ehni
Robert A. Hartnett
Bobby Rucker
Jose R. Santiago-Martinez

Celebrating 5 Years in January!
Albert M. Brown
Timothy L. Cooper
Diego Dhaiti
Michael Gurecki
Kathleen Kidwell
Benjamin B. McGinnis
Carlton Moon
Lionel Reddix
Allen L. Riggins Jr.
James C. Smith
Kelvin Williams

Celebrated 10 Years in December!
Jonathan C. Cumings
Jacob E. Frazier

Celebrating 10 years in January!
Richard J. Batlett
Vern F. Meyerotto

Celebrating 15 years in January
Troy L. McDonald

Celebrating 5 years in February!
Daniel Alder
Michael Elliott
Brian I. Johnson
Shawn T. Johnson
Scott Martyn Sr.
Jason L. Miller
Macsaux Patha
Paul Saxton
Patrick Sills
Shooting Star, LLC
Cecil Withrow

Celebrating 10 years in February!
Mitchell L. Dingus
Mark C. Kidwell
Rahshawn Lee
Donald B. Rutter

Celebrating 15 years in February!
Donald Fields

REMINDER!
We sent a message last month about the 1099-MISC. 
 It is so important we have copied it here as well. 

If you paid a co-driver $600 or more, outside of W-2 earnings, you are REQUIRED to provide them with a 1099-MISC.!  The required tax documents need to be mailed to the IRS on or before January 31st and we can help prepare them for you!  You will just need to provide us with each of the co-drivers addresses, social security numbers and the amounts you paid each.

DUE: 1099-MISC forms are due to the Recipient and the IRS on January 31, 2018
PENALTIES: There are penalties for failure to file and filing incorrectly or past due dates.
NOTICES: Please contact us if you receive a notice from the IRS regarding 1099-MISC forms.

Please contact us immediately if you would like assistance with the preparation of 1099-MISC forms for your Business.