The new Tax Law at a glance

By February 13, 2019 Family & Lifestyle No Comments

Here are a few major changes to the federal tax code that may affect your 2018 returns.

Standard Deductions

Filing Status 2017

Single: $6,350
Married: $12,700
Head of Household: $9,350

Filing Status 2018

Single: $12,000
Married: $24,000
Head of Household: $18,000

The Child Tax Credit (per child)

2017: $1,000
2018: $2,000

7 Important Deductions Going Away

  1. Dependent and personal exemptions
  2. Interest on Home Equity Loans not used to build, buy or improve your home
  3. Mortgage Insurance Premiums (MIP)
  4. Exclusion for forgiven debt
  5. Miscellaneous itemized deductions—i.e. unreimbursed employee expenses
  6. Moving expenses
  7. Tax preparation and investment fees

New Deduction Rules

Taxpayers who itemize their deductions can only deduct up to $10,000 on a combination of the following:

  • State income taxes
  • Sales tax
  • Local taxes
  • Property tax
    • If you pay high property taxes you will feel these effects more. This is common in states like California and New York.

Don’t Miss a Beat

Stay on top of these important dates now so you’re not surprised later…

April 15th: Tax Day Deadline Some USPS® office locations will be open late to postmark your tax return. Approved Postal Providers® do not offer late postmarking, so verify their last collection hours. If you file electronically, file no later than 11:59 pm

Paycheck Check-up In July, ensure your withholdings are up-to-date and adjust if necessary

October 15th: Extension Deadline This is the last day to file your tax return if you received an extension from the IRS.

Need more help making sense of it all? Consider using a tax pro. If you don’t have one yet, call me for a great referral!

20% of income tax returns prepared on paper have mistakes, which can lead to overpaying taxes or penalties.

In 2017, More than 83 million taxpayers paid someone to prepare their federal tax return

If You Mail Your Return…

  • Double-check your envelope to make sure it does not weigh more than 1 oz—tax returns without enough postage will be returned.
  • If your envelope is postmarked by the deadline date, your return is considerd on time.
  • To avoid returned mailings, print labels on your computer or neatly write both the destination and return addresses.

All information is general in nature and should not be taken as legal advice or guaranteed. Readers should not rely solely on this information. Contact a tax professional for more context on the tax law changes. Sources: IRS, USPS

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