New United States Tax Law (Part 1)
In the next few posts, we would like to provide a brief overview of the new United States Tax Bill.
Here are some of the basics for Individuals:
Effective Date: January 1, 2018
Expires: January 1, 2026
Property Taxes: (applies to the United States only) plus state and local income taxes are capped at $10,000 per year.
Head of Household: $18,000
Married (filing joint): $24,000
2% Itemized Deductions that are no longer deductible:
Tax Preparation Fees
Unreimbursed Business Expenses
Continuing Education Expenses
Safe Deposit Fees
IRS Trustee Fees
Home Office Expenses
Depreciation on Computers
$250 educator expense that exceeds the adjusted gross income deduction amount
Job search costs
Unreimbursed Business: such as travel, meals, entertainment, gifts, and lodging
Unreimbursed business work clothes
Unreimbursed business tools and supplies
Alimony is no longer a deduction for paying ex-spouse and no longer income to recipient ex-spouse, but only to those who divorce after December 31, 2018.
Disclaimer: This blog is for information purposes only and is not intended to provide investing, accounting, tax or legal advice and should not be relied upon.