Small employers can once again provide Qualified Health Reimbursement Arrangements (QSEHRA) via the Cures Act signed into law December 13, 2016 and IRC Section 9831(d).
Washington has passed initiative 1433, requiring employers to provide paid sick leave to most WA employees starting January 1, 2018. This state law mandate will effectively disallow the ability for WA employers to utilize the new federal credit for wages paid to the effected WA employees for family and medical leave.
Most of the new federal tax law changes approved by the new tax legislation (AKA Tax Cuts and Jobs Act) go into effect January 1, 2018 and do not impact 2017 tax returns.
Some areas of the new legislation that have an impact on 2017 tax return filings:
- Principal or second home acquisition indebtedness incurred after December 15, 2017 is subject to the reduced $750,000.00 limit on deducting associated interest expense.
- The 10% floor for deducting medical expenses on Schedule A (Form 1040) is reduced to 7.5% for 2017.
- Bonus depreciation of 100% will be available on purchases of new and used property purchased and placed in service after September 27, 2017.