2106 BUSINESS EXPENSES
Beginning with Tax Year 2018, the unreimbursed employee expense (2106) deduction has been eliminated for federal income tax purposes for most employees. For Tax Year 2017 and prior, 2106 Business Expenses are limited to the amount deductible for federal tax purposes.
Beginning with Tax Year 2024, Individuals under 18 years of age are exempt from paying municipal income tax. For Tax Years 2016-2023, Individuals under 18 years of age are NOT exempt from paying municipal income tax.
BALANCE DUE/OVERPAYMENT INFORMATION
Amounts under $10.01 will not be collected or refunded. The $10.01 de minimis threshold does not apply to amounts required to be withheld by employers.
ESTIMATED PAYMENT REQUIREMENTS
Quarterly payments of estimated tax are required if the anticipated amount due is $200 or more.
Lottery and gambling winnings are taxable - no minimum. Gambling losses may not offset gambling winnings unless the taxpayer is a professional gambler per IRS regulations.
NET OPERATING LOSS
Beginning with losses incurred in 2017 and thereafter, a net operating loss may be carried forward for 5 years. For taxable years beginning in 2018, 2019, 2020, 2021 and 2022, losses are subject to a 50% phase-in limitation. The amount of net operating loss carry forward that may be utilized in tax years 2018 through 2022 is limited to the lesser of 50% of the carried forward loss or 50% of that year’s income. For taxable years beginning in 2023 and thereafter, a net operating loss is no longer limited to a 50% phase-in limitation and the full loss may be used.
S-Corp distributive shares that do not represent wages are generally not taxable and should not be reported on Form 37.
WITHHOLDING FILING FREQUENCY
If withholding amount is $12,000 or more in the previous calendar year or more than $1,000 in any month of the preceding calendar year, file semi-monthly - due the 3rd banking day after the 15th day of the month and the 3rd banking day after the last day of the month. If withholding amount is less than $12,000 but more than $2,399 in the preceding calendar year or less than $1,000 but more than $200 in any month of the preceding calendar quarter, file monthly - due the 15th day of the following month. Employers not required to file semi-monthly or monthly, file quarterly - due the last day of the month following the end of the quarter.