Tax Filing Reminders and News: September 2017

September 2017 tax reminders & news

Tax Filing Reminders September – October 2017

The following tax filing deadlines are in September and October 2017.

September 15, 2017

  • Third quarter installment of 2017 individual and corporation estimated income tax is due.
  • S corporations: Filing deadline for 2016 tax returns for S corporations that requested/received a six-month extension.
  • Partnerships: Filing deadline for 2016 tax returns for partnerships that requested/received an automatic six-month extension.
  • Electing large partnerships: Filing deadline for 2016 tax returns for electing large partnerships that requested/received a six-month extension.

October 16, 2017

  • Filing deadline for 2016 individual or corporation tax returns that requested/received a six-month extension. Pay taxes due by this date.

Say Goodbye to the College Tuition Deduction

Congress decided not to extend this $4,000 deduction for 2017, leaving many parents worried that college will now be more expensive. However, Congress left in place two popular education credits that may offer a more valuable tax break:

  • The AOTC. The American Opportunity Tax Credit (AOTC) is a credit of up to $2,500 per student per year for qualified undergraduate tuition, fees and course materials. The deduction phases out at higher income levels, and is eliminated altogether for married couples with a modified adjusted gross income of $180,000 ($90,000 for singles).
  • Lifetime Learning Credit. The Lifetime Learning Credit provides an annual credit of 20 percent on the first $10,000 of tuition and fees, for either undergraduate or graduate level classes. There is no lifetime limit on the credit, but only couples making less than $131,000 per year (or singles making $65,000) qualify. Unlike the AOTC, this deduction is per tax return, not per student.

Who is affected by the loss of the tuition and fees deduction?

If you are paying for your student’s graduate-level courses and are making too much to qualify for the Lifetime Learning Credit, the tuition and fees deduction is generally the only means you have to reduce your tax bill.

Thankfully, there are many other tax benefits that help reduce the cost of education. There are breaks for employer-provided tuition assistance, deductions for student loan interest, tax-beneficial college savings options, and many other tax-planning alternatives.

Takeaway

If you have any questions about the upcoming tax filing deadlines or the loss of the tuition and deductions, please give us a call.

Call today

Posted in IRS News

Leave a Reply

*