Galena, IL (815) 777-0481

Byron, IL (815) 234-2942


Affordable Care Act Information

 *If you have the Affordable Care Act (ACA) or Marketplace Health Insurance, you will need a 1095A to file this year. Your return will not be able to be prepared without this.
*There is still a penalty for not having health coverage for the 2018 tax year. The penalty will be dropped starting with the 2019 tax year (filed in 2020), in accordance with the Tax Cuts and Jobs Act.

Charitable Donations

As a donor, you may not deduct labor or time, but you may deduct expenses such as mileage, uniforms, and even the cost of taking underpriveleged youth to sports events or the movies. 

Medical Expenses

It's difficult to reach the percentage of adjusted gross income you need to spend on medical expenses to be eligible. But if you qualify, you shouldn't overlook all possible expenses. Sometimes, its even best for married couples to consider filing separately if one partner has higher medical bills. 

Moving Expenses

If you moved more than 50 miles for work and stayed employed, you might be able to deduct resonable moving expenses. No itemization is necessary. 

Domestic Production Deduction

This generous benefit for having a qualified business in the U.S. can be claimed by sole proprietors, partnerships, and corporations. It can even apply to farmers. 

Mortgage Interest Points

Points paid on a home mortgage are usually deductable as interest. If the mortgage is for the purchase or improvement of your principal residence, you can either deduct the full amount of the points in the yearof payment or, if you're not itemizing your deductions that year, pay back the points over the loan term. 

Retirement Plan

One of the most powerful tax shelters available is a qualified retirement plan. Within certain limits, contributions to fund the plan are immediately tax deductable, plan investment earnings are tax deferred, and plan participants do not have to pay income taxes on benefits until they receive their distributions. 

Business Automobiles

You can claim deductions for the business-related use of an auto using either the standard mileage rate method or the actual expense method. You should use the method that will yield the largest deduction. 

Hiring Your Children for Your Business

If you have your own business, consider hiring your child to work after school or on vacations. The wages you pay your child for bona fide work are tax deductable. 

Home Office Expenses

To qualify for a deduction related to an office in the home, you must have and area of your home used excusively as your principle place of business. This includes a place of business where you meet or deal with patients, clients, or customers. 

Profit-Sharing Plans

Unlike other plans, a profit-sharing plan is flexible. It can be designed so that the employer is not required to make an annual contribution. 

    This list is far from exhaustive. Call us today to set a time to discuss your specific situation and needs.