Filing taxes can be a confusing and complex process. It can get even more complicated when new tax law changes come into effect every year. This means that you need to stay informed on the latest updates if you want to take full advantage of them when filing your taxes online. In this blog post, we will look at what you need to know about the most recent tax law changes, so you can make sure you’re up-to-date with the latest regulations before filing your taxes online. We’ll cover important topics like deductions, credits, filing requirements, and penalties that you should be aware of in order to maximize your refund and avoid any potential issues.
The standard deduction is increasing
The Tax Cuts and Jobs Act nearly doubled the standard deduction for most filers. The new law also repeals personal exemptions. For the 2018 tax year, the standard deduction is $12,000 for single filers and $24,000 for married couples filing jointly.
The standard deduction is increasing for the 2018 tax year, which means more taxpayers will be able to claim it. The new law nearly doubles the standard deduction, to $12,000 for single filers and $24,000 for married couples filing jointly. That means fewer people will itemize their deductions on their tax returns. The change takes effect this tax season (for filings due in April 2019) and applies through 2025.
Personal exemptions are gone
Starting in 2018, personal exemptions are no longer available when you file your taxes. This means that you can’t claim an exemption for yourself, your spouse, or your dependent children when you’re preparing your return. The standard deduction has also increased, so fewer taxpayers will itemize their deductions on their tax return.
As of 2018, the personal exemption has been eliminated. This means that you can no longer claim a personal exemption for yourself, your spouse, or your dependents. The standard deduction has also increased, so you may still be able to lower your tax bill by claiming the new, higher standard deduction instead.
The child tax credit is increasing
The child tax credit is increasing to $2,000 per qualifying child. The credit is refundable, meaning that if it exceeds the amount of taxes you owe, you will receive the difference as a refund. The income threshold at which the credit begins to phase out is also increasing, from $75,000 to $200,000 for single filers and from $110,000 to $400,000 for married filers filing jointly.
The child tax credit is increasing from $1,000 to $2,000 per qualifying child. The credit is refundable, meaning that if it exceeds the amount of taxes you owe, you can receive the difference as a tax refund. The income threshold at which the credit begins to phase out is also increasing, from $75,000 to $200,000 for single filers and from $110,000 to $400,000 for married couples filing jointly.
The new limit on state and local taxes
As of 2018, the federal government is now capped on how much state and local taxes (SALT) it can deduct from an individual’s taxes. The new limit is $10,000, which means that if you pay more than $10,000 in state and local taxes, you will not be able to deduct the full amount from your federal taxes. This change will most likely affect people who live in states with high state and local taxes, such as New York, California, and New Jersey.
If you are planning on itemizing your deductions for 2018, be sure to take the new SALT deduction limit into account. You may want to consider making some changes to your withholdings so that you don’t end up owing the government money come tax time. As always, we recommend speaking with a tax professional before making any changes to your withholding or filing status.
Changes to the mortgage interest deduction
The mortgage interest deduction is one of the most popular tax deductions, and it’s also one of the biggest. The deduction allows you to deduct the interest you pay on your mortgage from your taxable income.
The new tax law makes some significant changes to the mortgage interest deduction, both in how much you can deduct and how the deduction works.
First, the new law lowers the maximum amount of debt that qualifies for the deduction from $1 million to $750,000. This change applies to both new and existing mortgages.
Second, the new law eliminates the ability to deduct interest on home equity loans unless the loan is used to buy, build, or substantially improve your primary or secondary residence. This change takes effect in 2018 and applies to both new and existing home equity loans.
If you’re planning to itemize deductions on your tax return this year, be sure to take these changes into account when you calculate your mortgage interest deduction.
The mortgage interest deduction allows taxpayers who own their homes to deduct the interest they pay on their mortgage from their taxes. The deduction is available for both primary and secondary homes, and can be worth a significant amount of money to taxpayers.
The new tax law makes several changes to the mortgage interest deduction. First, the deduction is now capped at $750,000 for new mortgages taken out after December 15, 2017. This change applies to both primary and secondary homes. Second, the deduction is no longer available for home equity loans or lines of credit. This change only applies to loans taken out after December 15, 2017.
These changes may have an impact on how much you can deduct from your taxes if you own a home. Be sure to speak with a tax professional before filing your taxes to ensure that you take advantage of all deductions and credits that you are eligible for.
The disappearance of miscellaneous itemized deductions
The Tax Cuts and Jobs Act, enacted in December 2017, brought about the disappearance of miscellaneous itemized deductions starting in 2018. This means that taxpayers can no longer deduct expenses like unreimbursed employee business expenses, investment advisory fees, and tax preparation fees. The elimination of these deductions may make it more difficult for taxpayers to justify itemizing their deductions on their tax return.
The new tax law changes the way miscellaneous itemized deductions are calculated. Prior to 2018, miscellaneous itemized deductions were calculated as a percentage of your adjusted gross income (AGI). However, under the new tax law, miscellaneous itemized deductions are only allowed if they exceed 2% of your AGI. This means that many taxpayers will no longer be able to deduct certain expenses, such as investment management fees, unreimbursed employee expenses, and legal fees.
