Tax Updates

  • Children over 17 years old and elderly relatives each have a $500 deductions.
  • 529 Funds can be used for elementary and high school, along with college.
  • New standard deductions are higher:
  • $12,000-Single and married filing separately
  • $24,000-Married filing jointly
  • The additional amounts for being over 65 or blind will still be allowed
  • Personal and dependent exemptions are gone.
  • No deduction for home equity loan interest unless loan was used to buy, build, or improve your home.
  • Deductions for employee business expenses are eliminated starting with 2018 tax returns.
  • Moving expenses cannot be deducted beginning January 1, 2018.
  • 4 Deductions remain on Schedule A:
  • Mortgage
  • Property Taxes
  • Medical Expenses
  • Charity
  • Child tax credit increases from $1000 to $2000
  • Qualified business income deduction
  • If adjusted gross income less itemized or standard deduction is under $157,000 ($315,000 Joint), you can deduct 20% of your QBI from income before computing your tax. *Limitations apply.
  • Personal casualty or theft loss will no longer be deductible unless the loss occurred in a federally declared disaster area.
  • Health Care: Obama care penalty gone for 2019