Tax Update for 2018
January 2018

A new year has begun, bringing changes to the tax laws. We are committed to keeping you up-to-date on those changes, which include the following:
New Withholding Tables Released by IRS

The Internal Revenue Service has released updated withholding tables for 2018. The tables reflect major changes made by the Tax Cuts and Jobs Act (TCJA), including modification of tax rates and brackets. 
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Employers should begin using the updated tables as soon as possible, but no later than 2/15/18. The new withholding tables are designed to work with the Forms W-4 that employees already have on file with their employers. In other words, employees shouldn’t need to complete new versions of their Form W-4. 

However, employees may want to confirm that their withholding will be adequate once the new withholding rates have been reflected in their paychecks. The IRS is also revising its withholding tax calculator available on its website and expects the revised version to be available by the end of February.
Illinois Requires Electronic Filing of W-2 Forms

The Illinois Department of Revenue has established new electronic filing requirements beginning in 2018 for Withholding Income Tax. All employers and payers are required to file the following forms electronically:
  • Starting with the 2017 tax year, federal Forms W-2, Wage and Tax Statement; W-2c, corrected Wage and Tax Statement; and W-2G, Certain Gambling Winnings, and 
  • Starting with the 2018 tax year, Form IL-941, Illinois Withholding Income Tax Return

Electronic filing of Forms IL-941, IL-941-X, W-2, W-2c, and W-2G can be done by registering and using MyTax Illinois.  MyTax Illinois is a free online account management program that offers a centralized location, provided by the Illinois Department of Revenue, for businesses to register for taxes, file returns, make payments, and manage their tax accounts. 

For Forms W-2, employers may also transmit through third-party services or the Department’s Electronic W-2 Transmittal Program. You may request a waiver of the electronic filing requirement if you do not have internet access or it is a hardship to file electronically. Visit the Illinois Department of Revenue for more information or give us a call. We would be happy to assist you.
Illinois Enacts "Invest In Kids" Tax Credit
In 2017, Illinois enacted an "Invest in Kids" Scholarship Tax Credit Program that offers a 75% income tax credit to individuals and businesses that contribute to a qualified Scholarship Granting Organization (SGO). The SGO then provides scholarships for students to attend qualified non-public schools if their families meet the low income requirements. 
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If you are interested in more information about this program, check out the Frequent;y Asked Questions (FAQs) on the SGO websites (ex: Empower Illinois) or visit the Illinois Department of Revenue website.
A New Day, A New Year
Here at Mathieson, Moyski, Austin & Co. we are already working in "tax season mode," anticipating many of the changes to the tax laws and eager to be of service to you, our clients. if you have any questions or concerns, please call our office at 630-653-1616, or email us at info@mmaadvisors.com. We're here to help!