Dear Friends and Clients:

Happy New Year and welcome to 2018! We appreciate the opportunity to work with you again in preparing your income tax returns.

Kindly review and complete the attached helpful questionnaire for assistance with preparing for your tax appointment.

Here are some 2017 reminders, changes and one large new item:

Reminder the IRS requires proof of residence for all dependents. Please include documentation to support residency of anyone being claimed on your return. Suggested records include driver’s license, school records, medical records, etc.

With AGI limitations, The American Opportunity Tax Credit (AOTC) is the enhanced version of the Hope Credit, allowing up to $2,500 for four years of post-secondary education. The Lifetime Learning Credit (LLC) continues to be available to post-secondary and graduate students. Please submit the printout of the students’ financial account from the school, Form 1098-T and any receipts for books and equipment as the documentation will be essential.

In accordance with the Affordable Care Act, you will receive Forms 1095-A, 1095-B or 1095-C, from employers, insurance companies or the federal marketplace; we will want to see the health coverage confirmations.

Important requirements for reporting foreign assets. If you have financial interests in foreign accounts, or signatory authority of an account in a foreign country, please submit that information to us. There are important requirements of reporting of foreign assets. The deadline for filing an FBAR return coincides with your individual return.

For 2017, Illinois tax changes include increased tax rates after 6/30/2017, increased credit amounts for K-12 education expenses, earned income and added an educator classroom credit. Most credits are eliminated for high income earners.

The Tax Cuts and Jobs Act effective 2018: This comprehensive tax overhaul with significant changes for individuals and businesses for years beginning after 12/31/2017. Considering the changes and how they will uniquely affect our clients, we look forward to tax planning with you. Some important areas: tax brackets and rates, personal and business deductions, exemptions, 529 plans, new Qualified Business Deduction, depreciation rules and much more!

Please call to schedule your appointment in Palos Heights, Chicago, Northfield or Oak Brook. Of course, if you are accustomed to mailing your documents prior to your appointment, you may send them to the Palos Heights office.

Thank you for your referrals! We look forward to serving you again this tax season.

Bob Daemicke, EA           Jim Daemicke, CPA            Dan Daemicke, EA           Rita J. Daemicke, EA