The economic advantages and disadvantages of the latest tax overhaul are not for us to argue about. It’s our job and duty to make sure you are in accordance with the new laws to your greatest benefit. Far from an exhaustive list of deductions you can and cannot claim, below are some brief examples of what changes have been made. For more information please reach out to us. Suffice it to say, your new tax form will not fit on a postcard.
Changes
Change highlights:
- Standard deduction increase to almost double (individuals $12,000, married couples $24,000)
- Child tax credit expanded
- Individual mandate penalty reduced to $0
- Home equity loan interest still deductible but limited to home improvement
- Estate tax deduction doubled
Tax Deductions Eliminated:
-
Employee expenses that weren’t reimbursed (previously purchases that were job related and in excess 2% of gross income)
-
Qualified employee education expenses
- Tax preparation services
- SALT deductions over $10,000
-
Moving expenses
-
Losses incurred by natural disasters in areas not presidentially declared
-
Alimony
-
Mortgage interest over $750,000
-
Interest on home equity loans
- Though not a deduction, personal exemptions have been eliminated
These are just the more important changes that may affect individual tax filers. Most of these changes are set to expire in 2025.
