You may have already heard the news: Many tax numbers that are adjusted annually for inflation did not change for 2016. For example, the 401(k) contribution limit remains at $18,000 this year, plus another $6,000 if you're celebrating your 50th birthday during 2016. SIMPLE plan contributions remain the same for 2016 also. You can save up to $12,500 in your SIMPLE account this year, plus another $3,000 if you're age 50 or over.

Though the limits haven't increased, taking full advantage of allowable contributions and any amounts your employer matches is still a good idea. Contributions you make to employer-sponsored retirement plans reduce your taxable income because your employer deducts the amount you specify from your paycheck before taxes. You might also be able to benefit from a savers credit of up to $2,000.

If you're already contributing the maximum, you may want to consider opening an individual retirement account this year. You can have both types of retirement plans, and a Roth or traditional IRA will help you diversify your retirement holdings and save additional tax-deferred or tax-free money. Just remember that your traditional IRA contribution may not be tax-deductible if you're eligible to participate in your employer's plan.

The maximum amount you can contribute to an IRA during 2016 is $5,500 (plus $1,000 when you're age 50 or older).
​
Give us a call for information about these and other tax-sheltered accounts that can offer significant breaks for 2016. We are trusted CPA advisors servicing Burr Ridge, Hinsdale, Willowbrook, Darien, and all Chicago land area. 

Do you need assistance with your business and/or personal tax returns? Would you like to have a trusted source for your accounting, allowing you additional time to focus on increasing your business? Do you use QuickBooks, or plan to in the future, for your accounting? We include these in all our service packages, customized to fit your personal or business needs.   
 
We are currently accepting new clients. Your initial consultation is free, so you have nothing to lose and everything to gain.Our experienced staff is available to help you streamline your accounting, giving you more free time for yourself. Set up an appointment today by calling (630) 320-3720 or email us at [email protected]. 
 
For more free resources, such as Online Advisor Newsletters, Tax Organizers, and Record Retention Schedules, access our website www.monarchaccountinggroup.com.

Art Bradley CPA & Janice Papais CPA 
145 Tower Drive, Suite 4
Burr Ridge, IL 60527
Phone (630) 320-3720

As you begin preparing year-end 2015 payroll tax returns, take time to consider whether a new Affordable Care Act reporting requirement will affect you. If you're an applicable large employer, "Form 1095-C, Employer-Provided Health Insurance Offer and Coverage," is required for each of your full-time employees.

What's the definition of an applicable large employer (ALE)? You're considered an ALE when you have 50 or more full-time employees in the prior year. A full-time employee is anyone working on average 30 hours or more per week, or 130 hours per month. You'll also need to count "full-time equivalent" employees. These are employees whose actual working hours are less than 30 per week, but whose total combined hours meet the equivalent of full-time.

The 2015 Form 1095-C is due to your employees by March 31, 2016, and to the IRS by May 31. (The IRS deadline is June 30 if you file electronically, which you must do when you issue 250 or more forms.) The penalty for not filing Form 1095-C if you're required to is $250 per form, up to $3 million per year.
​
Another health insurance payroll reporting requirement to remember: You still need to report the value of health insurance coverage on an employee's W-2 if you have 250 or more employees.

Give us a call if you have questions about these or any other payroll reports. We're here to help.

Do you need assistance with your business and/or personal tax returns? Would you like to have a trusted source for your accounting, allowing you additional time to focus on increasing your business? Do you use QuickBooks, or plan to in the future, for your accounting? We include these in all our service packages, customized to fit your personal or business needs.   
 
We are currently accepting new clients. Your initial consultation is free, so you have nothing to lose and everything to gain.Our experienced staff is available to help you streamline your accounting, giving you more free time for yourself. Set up an appointment today by calling (630) 320-3720 or email us at [email protected]. 
 
For more free resources, such as Online Advisor Newsletters, Tax Organizers, and Record Retention Schedules, access our website www.monarchaccountinggroup.com.

  
145 Tower Drive, Suite 4
Burr Ridge, IL 60527
Phone (630) 320-3720

You're probably familiar with tax provisions that expire on an annual basis, also known as "extenders." In mid-December 2015, Congress renewed the extenders that expired last year.
But this time, the extender renewal went further than making the breaks retroactive to the beginning of 2015. Some of the rules are now effective through December 31, 2016, some are effective through 2019, and some are effective permanently. Other provisions made changes to existing tax rules that were not part of the extenders.
What does that mean for you? For one thing, it means you can benefit from tax breaks such as bonus depreciation, expanded Section 179 expensing, and residential and business energy improvement incentives on your 2015 federal income tax return.
Here are three rules that are back in place for 2015 - and that were permanently extended, meaning they'll also be available in future years.

• State and local sales tax deduction. If you itemize, you can choose to deduct sales taxes you paid during 2015 instead of state and local income taxes. You can claim your actual expenses or use optional IRS tables.

• Educator expenses. If you're a teacher who spends your own money for classroom supplies, you can claim up to $250 of your expenses as an above-the-line deduction. You may be able to deduct additional out-of-pocket expenses if you itemize.

• Charitable donations from your IRA. Are you age 70½ or older? You can make a tax-free distribution of up to $100,000 from your IRA when the money is paid directly to a qualified charity.

Please contact us to discuss how this new law could affect you.


Do you need assistance with your business and/or personal tax returns? Would you like to have a trusted source for your accounting, allowing you additional time to focus on increasing your business? Do you use QuickBooks, or plan to in the future, for your accounting? We include these in all our service packages, customized to fit your personal or business needs.   
 
We are currently accepting new clients. Your initial consultation is free, so you have nothing to lose and everything to gain.Our experienced staff is available to help you streamline your accounting, giving you more free time for yourself. Set up an appointment today by calling (630) 320-3720 or email us at [email protected]. 
 
For more free resources, such as Online Advisor Newsletters, Tax Organizers, and Record Retention Schedules, access our website www.monarchaccountinggroup.com.
Art Bradley CPA & Janice Papais CPA 
   
145 Tower Drive, Suite 4
Burr Ridge, IL 60527
Phone (630) 320-3720