This is the information for 2018 tax-year that is due to be paid at the year 2019

December 31, 2018, is the last day of the current tax year (2018), for sole owners filing company tax returns on Schedule C and for partnerships with S corporations.

• The sole proprietors and single-member LLC’s on Schedule C: April 15, 2019

• The partnerships and S corporations: March 15, 2019

• Corporations are: April 17, 2019

For the year 2018 individual income tax rates (for pass-through businesses that pay business taxes on their returns)

The levels start at 10% and gradually increase to 15%, then 25%, then 28%, then 33%, then 35%, and finally reaching a top rate of 39.6%. These rates are in effect through 2025.

The new tax law made at the end of 2017 changed 2018 corporate income tax rate to a flat 21 percent for all corporations, effective on January 1, 2018, and after.

The IRS regular mileage rate has changed for 2018. Below are the rates:

•  Cents per mile for business miles 54.5 

• Cents per mile for medical or moving purposes 18 

• Cents per mile drove in service of charitable organizations 14 

About businesses taking the standard mileage deduction. These rates are in effect for the whole year.

The standard mileage rate or actual expenses can be chosen to deduct by businesses

The mileage you drive makes a difference. If you drive less than 50% for your business, you better want to use the standard rate, but driving over 50% for your business purposes, It will be better to choose to add actual expenses. Read more about Standard Mileage vs. Actual Expenses: Getting the Biggest Tax Deduction

The Social Security tax rate remains the same. $127,200 is the maximum amount of salaries on which withholding is based for 2018.

The new maximum affects the employees and the owners that have to pay tax as self-employed.

When a business owner has two sources of income, one is a business, and another is an employee. The salary from the employment will be considered the first and the self-employment the second.

Starting with 2013 tax-year and continuing through 2017, Medicare tax rate of was added, and 0.9% is applied to combined employment and self-employment according to this levels:

• $250,000 for married filing jointly – 

•  $125,000 for Married filing separately.

• $ 200,000 for Single

• $200,000 for the head of household (with qualifying person) 

• $200,000 for qualifying widow(er) with dependent child 

Above $200,000 the additional tax should be withheld from employee payroll. For business owner that are self-employees, this additional Medicare tax will be included in self-employment.

Section 179 for deductions on purchases of business assets

Will increased deductions

• • Deductions up to 500,000 per year on behalf of Section 179 will allow your business to purchase and deduct new equipment or assets intermediately and not waiting for depreciating over some time.

Bonus depreciation was reinstated, it will be phased out over the coming years, as an incentive to businesses for purchasing new equipment and replacing old equipment. The 

• amount of bonus

depreciation is 50% for 2015, 2016, and 2017, reduced to 40% for 2018 and 2019.