NEW TAX LAW
If you’re wondering how you’ve been affected, we’ve got your back. We work to ensure that our products are up to date and that you can use them to file your taxes with complete confidence.
Still, a lot of people wonder what is in the bill and how that might affect them. Here is a summary of some of the key tax rules in the new tax certificate and how they affect you.
Increased standard deduction: The new tax law almost doubles the standard deduction amount. For individual taxpayers, the standard deduction increases from $ 6,350 for 2017 taxes to $ 12,000 for 2018 taxes (which you file in 2019). Married couples filing together see an increase from $ 12,700 to $ 24,000. These increases mean fewer people need to list. Today around 30% of taxpayers state. Under the new law, this percentage is expected to decrease.
Increased Child Tax Credit: For families with children, the child tax credit is doubled from $ 1,000 per child to $ 2,000. Additionally, the refundable amount increases from $ 1,100 to $ 1,400. The bill also adds a new $ 500 non-refundable balance for loved ones other than children. Eventually, the income threshold at which these benefits expire will be raised from $ 110,000 for a married couple to $ 400,000.
Personal and dependent exceptions: The bill removes the personal and dependent exceptions, which were $ 4,050 for 2017 and increased to $ 4,150 in 2018. State and Local Taxes / Home Mortgages: The bill caps the amount of state and local property, income, and sales taxes that are deductible to $ 10,000. In the past, these taxes were generally fully tax deductible. The bill also limits the amount of mortgage debt on new home purchases, for which $ 750,000 in interest is deductible from $ 1,000,000 under applicable law.
Healthcare: The bill will abolish the tax penalty for not having health insurance after December 31, 2018. In addition, the lower limit above which medical expenses can be deducted from the current legal lower limit of 10% to 7.5% will be temporarily lowered in 2017 and 2018. For 2018, you can therefore deduct medical expenses that amount to more than 7.5% of your adjusted gross income , as opposed to the higher 10%.
Fastax got you covered
If you memorize these tax changes, most of which will affect taxes for 2018 that you will file in 2019, don’t worry. Fastax has you covered and will be up to date with the latest tax laws. Call us at 661 493-8512 for tax assistance