Issue link: https://www.massageandbodyworkdigital.com/i/943527
A B M P m e m b e r s e a r n F R E E C E a t w w w. a b m p . c o m / c e b y r e a d i n g M a s s a g e & B o d y w o r k m a g a z i n e 93 must have been purchased after September 27, 2017, and before January 1, 2023. MILEAGE For business use of a car, the Internal Revenue Service has set the standard mileage rate at 54.5 cents per mile—up one cent from 2017. The mileage rate is one of two methods for accounting the business use of a vehicle. The second method is the deduction of actual expenses, where an owner must calculate the percentage of miles the car is driven for business and apply that percentage to vehicle expenses (such as fuel, maintenance, repairs, insurance, depreciation, and lease payments). HEALTH CARE Most company health-care plans are set for 2018, but there will be some changes when choosing policies that begin later this year or in 2019. Business owners who want to sign up for group insurance through the government's Small Business Health Options Program (SHOP) must do so through a health insurance agent or broker—or directly through an insurance company—and will no longer be able to sign up through the government website, HealthCare.gov. However, the site can still be visited to get information. The TCJA also ends the requirement that individuals buy health insurance beginning in 2019. MEDICAL EXPENSES The medical expense deduction has been expanded for two years. In that time, filers can deduct medical expenses adding up to more than 7.5 percent of adjusted gross income, which is down from 10 percent in past years. PHASED-OUT DEDUCTIONS • Entertainment expenses • Transportation fringe benefits—including mass transit passes, commuter vehicles, and parking privileges (If employers provide these benefits, however, they remain tax free to employees.) • Employer-paid wages paid for family or medical leave after 2019 • Personal exemptions • Tax preparation deduction • Losses sustained due to a fire, storm, shipwreck, or theft not covered by insurance (Now through 2025, losses can be claimed if they result from an official national disaster.) • Moving expenses, except for members of the military • Interest on home equity lines of credit (Current mortgage holders are not affected.) • Alimony payments (This change begins in 2019 for divorces signed in 2018.) OTHER CHANGES • State and local tax deduction (SALT) remains in place for those who itemize their taxes, but now there is a $10,000 cap. Taxpayers must choose between property taxes and income or sales taxes. • Child tax credit has doubled to $2,000 for children under 17. It is also available, in full, to more people. The entire credit can be claimed by single parents who make up to $200,000 and married couples who make up to $400,000. Parents who don't earn enough to pay taxes can claim the credit up to $1,400. • Taxpayers can claim a $500 temporary credit for non-child dependents, like elderly parents, children over age 17, or adult children with a disability. The TCJA allows a $500 credit for each non-child dependent. The credit helps families caring for elderly parents. • Student loan interest, which is up to $2,500 per year, is safe. • Parents can use 529 savings plans for tuition at private and religious K–12 schools, as well as college tuition. The funds can also be used for expenses for home-schooled students. Lisa Bakewell is a full-time freelance writer/ editor in the Chicagoland area. Her areas of writing expertise include health and fitness, travel, parenting, company/personal profiles, business, money-saving, and "how-to" articles. She can be reached at lbakewell@att.net. Small Business Health Options Program (SHOP) What's changing with SHOP in 2018? 1 • Instead of using HealthCare.gov to choose a plan and enroll, you will work with an insurance company or a SHOP-registered agent or broker. You will also pay your premiums through your agent, broker, or insurance company. You will not make payments through HealthCare.gov. • If you are enrolling for the first time (or you've experienced a gap in coverage), visit HealthCare.gov to verify your eligibility at https://forms.cms.gov/ shop-eligibility-determination-form. What's staying the same with SHOP in 2018? • Small businesses with between 1–50 employees are generally eligible. Use the eligibility determination tool at https://forms. cms.gov/shop-eligibility-determination- form to see if your business qualifies. • Offering SHOP coverage is generally the only way for small businesses to save with the Small Business Health Care Tax Credit. For more information, visit www. healthcare.gov/small-businesses/provide- shop-coverage/small-business-tax-credits. • You can still use HealthCare.gov to confirm that your business is eligible for SHOP, browse plans and prices (www.healthcare. gov/see-plans/#/small-business), and find useful resources for enrolling in coverage. • You can use your current SHOP-registered agent or broker or find a new one in your area through the Find Local Help tool at https://localhelp.healthcare.gov. Questions? Contact the SHOP Call Center at 800-706-7893 (TTY: 711) weekdays from 9:00 a.m.–7:00 p.m. Eastern time. Note 1. HealthCare.gov, "What's New in SHOP for 2018," accessed January 2018, www. healthcare.gov/small-businesses/provide- shop-coverage/whats-new-2018-shop.