Mileage Rates for 2018
Beginning on Jan. 1, 2018, the standard mileage rates for the use of a car, van, pickup or panel truck are:
- 54.5 cents per mile for business miles driven
- 18 cents per mile driven for medical or moving purposes
- 14 cents per mile driven in service of charitable organizations
2018 HSA Contributions
2018 offers individuals and families opportunities to save for current and future health care with a Health Savings Account (HSA):
HSA holders can choose to save up to:
$3,450 for an individual ($4,450 for an individual 55 and older)
$6,900 for a family ($7,900 for a family HSA holder 55 and older)
These contributions are 100% tax deductible from gross income.
Minimum annual deductibles are $1,350 for self-only coverage or $2,700 for family coverage.
Annual out-of-pocket expenses (deductibles, copayments, and other amounts, but not premiums) cannot exceed $6,650 for self-only coverage and $13,300 for family coverage.
2018 Maximum Retirement Contributions
Maximum retirement plan contributions for 2018:
- IRA for those under age 50 $5,500
- IRA for those 50 and over $6,500
- SIMPLE plan for those under age 50 $12,500
- SIMPLE plan for those 50 and over $15,500
- 401(k) plan for those under age 50 $18,500
- 401(k) plan for those 50 and over $24,500
Audits of Nonprofits
Audits take considerable time and effort, but they provide nonprofits with fair assessments of their financial health, in addition to revealing vulnerabilities such as weak internal controls, insufficient cash reserves and poor investment policies. And although the IRS Form 990 doesn’t mandate audited financial statements, the IRS does ask organizations to discuss their audit activities, as well as the role their board plays in them.
Donation Recordkeeping
Keep Records of All Donations.
You need to keep a record of any donations you deduct, regardless of the amount. You must have a written record of all cash contributions to claim a deduction. This may include a cancelled check, bank or credit card statement or payroll deduction record. You can also ask the charity for a written statement that shows the charity’s name, contribution date and amount.
Record Retention
Check our Taxes QuikGuide for business and individual record retention guidelines as you archive historical records.
Checking Exempt Status of Organizations
Use IRS Select Check to determine that organizations to which you make contributions are eligible to receive tax-deductible charitable contributions (Publication 78 data). Users may rely on this list in determining deductibility of contributions
Need Help Valuing Non-cash Donations?
Click here for a useful tool to assist you in valuing your donatons to charity of clothing and other household items.
Form 990-N Filing for Small Charities
Small tax-exempt organizations may be able to shift to the simpler Form 990-N (e-Postcard) for their annual information reporting. The IRS issued guidance ( click here for Revenue Procedure 2011-15) that will allow more tax-exempt organizations to file the e-Postcard rather than the Form 990-EZ or the standard Form 990.
For tax years beginning on or after January 1, 2010, most tax-exempt organizations whose gross annual receipts are normally $50,000 or less can file the e-Postcard. The threshold was previously set at $25,000 or less. (However, supporting organizations of any size must file the standard Form 990 or, if eligible, Form 990-EZ).
Client Portals
Reeder & Associates offers secure client portals for clients to send and receive information without size restrictions. In addition to sending and receiving information, the portals will serve as a safe place for access to your tax returns, financial statements and other information we may provide. Our client portals make it easy to access, manage, and securely share files and documents, anytime and from anywhere. You can access the client portal securely from any Web browser or Internet-enabled mobile device. Whenever you want to access your portal you can simply go to our home page and click on Client Log-in.
