TAX CUTS AND JOBS ACT
Here is the summary of the latest changes to the new tax laws affecting most Americans for the tax year 2018. At the present time, these are the most up-to-date changes I have to show you. Any questions you may have, please feel free to call my office.
A. Standard Deduction:
1. MFJ/SS $24,400
2. HH $18,350
3. S/MFS $12,200
B. Itemized Deductions (not allowed)
- Union dues
- Tax Preparation Fees
- Investment Expenses
- Dues to Professional Societies
- Home Office of Employee
- Job Search Fees
- Legal Fees
- Tools Used on Job
- Work Clothes/Uniforms
- Repayment of $3,000 or less
- Teachers Expenses of $250>
- Tuition/Fees Deduction
- Moving Expenses
- Casualty/Theft Losses
- Alimony Payments: Not valid for 2019 and beyond
C. Child Tax Credit:
1. Increased to $2,000
D. Section 529 Plan:
1. Up to $10,000 per beneficiary
E. Auto /Truck Depreciation:
1. Year 1: $10,000
2. Year 2: $16,000
3. Year 3: $ 9.600
4. Year 4: $ 5.760
F. HSA Deduction:
1. Self Only $ 3,950
2. Family $ 6,900
G. Day Care Rates:
1. Breakfast: $1.39
2. Lunch/Supper: $2.49
3. Snack: $ .74
H. Standard Mileage:
1. Auto/Business: $ .58
2. Medical : $ .20
3. Charitable: $ .14
I. Student Loan Deduction:
1. $2,500 deduction
J. 1098 T Deduction
1. Need to have statement at the time of the appointment
K. Small Business Owners (Schedule C):
1. 20% Deduction off of Net Profit
L. Mortgage Interest Premiums:
1. $750,000 maximum Deduction
M. Adoption Credit:
1. Deduction is $13.810
N. Medical Expenses:
1. Reduced to 07.5%
O. Charitable Contribution:
1. Increased to 60% of AGI
E – FILE BEGINS ON JANUARY 20th
SPECIAL BULLETIN – HEALTH COVERAGE
A. 1095 A: insurance issued by marketplace – need to be mailed by January 31st
B. 1095 B: insurance designed for taxpayers and their dependents – need to by mailed by March 30th
C. 1095 C: insurance issued by employers – need to be mailed by March 30th
For any and all other tax law changes, please call me with any other questions or concerns you may have regarding your individual tax return.
Refunds will not be sent out until February 2nd.
In the event you feel your identity has been compromised, please contact:
Eleven Tips to Choosing a Tax Preparer
Many people look for help when choosing a tax professional when it is time to file their tax return. The IRS recommends that you choose your preparer wisely. Even if the return is prepared by someone else, the preparer is legally responsible for what is on it. Like every year, the IRS wants you to use a tax preparer who will sign the returns and enter their Preparer Tax Identification Number (PTIN). Listed below are eleven (11) tips when choosing a tax professional. Also, listed are six (6) tips to consider when preparing your taxes for the upcoming year.
- Check the Tax Preparers’ qualification
- Verify your information is correct.
- Check the Tax Preparers’ history – ask for referrals.
- Ask about their service fees.
- Ask if they offer electronic filing.
- Provide all records needed to prepare your return.
- Make sure the Tax Preparer is accessible year round.
- Never sign a blank form without being explained to you.
- Review the entire return before signing it.
- Make sure the preparer signs the return with their PTIN.
- Report abusive Tax Preparers to the IRS.
Six Tips to Prepare for Next Year’s Taxes
- Prepare to Itemize Deductions
- Adjust Your Withholdings
- Store your Record(s) in a Safe Place
- Organize your Recordkeeping
- Shop for a Tax Professional Early
- Have all receipts available during the interview