Phone: 651-298-1188
Fax: 651-228-1952

624 Grand Avenue
Saint Paul, MN 55105

JANUARY 2017

Congratulations and best wishes to Terry Skally. She retired December 1, 2016 after helping hundreds of people with their taxes and investment needs for over 30 years here at Skally's Tax Service!

The "Scammers" are still out there-.

The scammer calls a taxpayer and says that the taxpayer owes money to the IRS. The scammer then requests the taxpayer's social security number and credit card information  to pay the bill.

This is a scam. The IRS does not do "cold calls". If there is money owed to the IRS the taxpayer would receive a letter first and a chance to challenge the IRS' position.

If you receive a call such as this - DO NOT GIVE ANY SOCIAL SECURITY OR CREDIT CARD INFORMATION. Hang up. You could then call the IRS at 1-800-829-1040 to make them aware of this problem.

Tax Legislation finally passed

Minnesota has passed legislation that adopts the changes made to the tax code by the Federal government late in 2015. The changes will affect both the 2015 and 2016 tax years.This will mean some taxpayers will be eligible for refunds on their 2015 Minnesota return. Be sure to ask your preparer if this legislation affects you.

Here are some Updates for                                      2016                    2017                                                             

IRA Contribution Limits                                               5,500                  5,500                       

Catch-up Contribution (age 50 or older)                     1,000                  1,000                    

Simple IRA Plan                                                        12,500                12,500

Catch-up Contribution (age 50 or older)                      3.000                  3,000              

401(k), 403 (b), 457 Contribution Limits                    18,000                 18,000

Catch-up Contribution (age 50 or older)                      6,000                   6,000

Those aren't misprints - retirement plan contribution limits are pretty much the same for 2016 and 2017..

Other information to note:

For 2016 the mileage rate for business travel is 54 cents per mile. For 2017 the rate decreases to 53.5 cents per mile.

Additional taxes affect single filers with modified adjusted gross incomes above $200,000 and of couples over $250,000. Marrieds filing separately get a threshold of $125,000. The rates are .9% of earned income and 3.8% on investment income.

Maximum Earnings Limit and still receive full Social Security benefits if under full retirement age is $15,960 for 2017.

The penalty for not having health insurance in 2016 will be higher than it was for 2015. People without insurance should contact MnSure to explore their options.

 

Skally's Tax Service is on Facebook! Try facebook.com/skallystaxservice to connect. Hope you "like" us!

 

A few tips -

Schedule your tax appointment as soon as you can. Our schedules are filling up fast.

The government requires us to file all tax returns electronically. In order to do that we need payment for our service and a signed Form 8879 from our client. Please remember to look over the completed return we provide to you, sign that form and return it to us as soon as you can.

Our mission is to be a tax service that provides accurate assessments of tax liability and resources for financial decisions.

 

 


 

 

 

 

Phone: 651-298-1188 | Fax: 651-228-1952 | 624 Grand Avenue Saint Paul, MN 55105
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