Some new things, some stay the same. Worried about how the Tax Cuts & Job Act of 2018 may affect you? Schedule an appointment with us; we’re happy to sit down with you and review your personal tax situation.
- The new tax law increases the standard deduction for taxpayers who are married filing joint to $24,000, single taxpayers and married filing separate taxpayers to $12,000 and for head of household the new standard deduction is $18,000.
- Tax rates are lower. Most taxpayers will find themselves in a lower tax bracket this year.
- There is significant alternative minimum tax relief in the new tax law.
- The HSA contribution limit increased to $6900 for family coverage and $3450 for individual coverage.
- Investment expenses and tax preparation fees are no longer deductible.
- Teachers can still deduct $250 in expenses for work on their 1040 tax return.
The good news is, large tax savings are possible with good tax planning. And, good tax planning should start NOW, well before the new year rolls around.
- Meals are still deductible for businesses but entertainment is no longer deductible. Golfing, tickets to sporting events and other forms of entertaining clients that was available as a deduction previously is no longer deductible beginning in 2018. Business meals and business travel expenses however are still deductible.
- Let’s chat!