1 2 Laura Hipes CPA | Ottawa IL 61350
"My philosophy is to give to each client, personalized assistance in reducing your tax burden with an honest approach. Integrity is essential in protecting your interests, as well as in earning your trust.” 
                                            - Laura Hipes
Current News
​​2017 Inflation Amounts

Business mileage rate is $0.535/mi., down from $0.54 in 2016.

Medical & moving mileage rate is $0.17/mi, down from $0.19 in 2016.

Charity mileage is $0.14 per mile.

Household Employee: The threshold whereby someone who works at your home becomes an employee remains at $2,000.

​Gift tax limit remains at $14,000.


​2016 Tax Return Filing Season Is Here!

Tax returns can be first submitted on January 23, 2017. Tax returns are due April 18, 2017 because April 15 falls on a Saturday.

Individuals who expect to claim the Earned Income Credit (EIC) or the Additional Child Tax Credit (ACTC) will need to wait longer to receive their refund for 2016. The IRS will hold the entire refund until at least February 15, 2017; no partial refunds will be issued.​​

The PATH Act of 2015 provided for this change in the law so that the IRS might have additional time to review whether refunds are due to identity theft and/or refund fraud.


Protecting Americans from Tax Hikes Act of 2015 (PATH)

Dec 18, 2015 - Congress finally converted many of the temporary tax benefits (previously extended on an annual basis) to permanent status. Only a few tax provisions were simply extended for another year or later. The bill is expected to be signed by the President next week.

Some of the more popular income tax provisions for individuals now made permanent are as follows:

- American opportunity credit for qualified educational expenses 

- Enhanced child tax credit

- Enhanced earned income credit

- IRA third-party transfers to qualified charitable organizations by taxpayers over age 70-1/2 (in lieu of required minimum distributions up to $100,000)

- K-12 teachers' $250 "above the line" deduction for supplies and beginning in 2016, also for professional development costs​

- State sales tax deduction in lieu of state income tax (if itemizing)

- Contribution of real property for qualified conservation purposes

Popular individual income tax provisions extended only for 2015 and 2016 include:

- Tuition & fees deduction (above-the-line) for qualified educational expenditures

- Mortgage loan forgiveness (no cancellation of debt income) up to $2 million of indebtedness regarding a principal residence

- Mortgage insurance premiums deductible as mortgage interest (new mortgages after 2006)

- Nonbusiness energy credit on qualified home improvements.

​Permanent business income tax provisions include:

- Sec 179 expense limit of $500K (to be indexed for inflation) Also, beginning 2016, HVAC units are eligible to be expensed

- Enhanced charitable deduction for food inventory (increased in 2016 from 10% to 15% of AGI)

- 15-year depreciation for qualified leasehold improvements, retail improvements, and restaurant property

- Wage credit for active military reservists (beginning in 2016, for all employers)


2016 Inflation Amounts

Business mileage rate is $0.54/mi., down from $0.575 in 2015.

Medical & moving mileage rate is $0.19/mi, down from $0.23 in 2015.

Charity mileage is $0.14 per mile.

Household Employee: The
threshold whereby someone who works at your home becomes an employee is $2,000 for 2016, up from $1,900 in 2015.

​Gift tax limit remains at $14,000.
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