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.
Standard Deduction:
Single: $12,000
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
Licensing Fees
Investment Expenses
Hobby Expenses
IRA Losses
Safe Deposit Fees
IRS Trustee Fees
Professional Dues
Home Office Expenses
Depreciation on Computers
$250 educator expense that exceeds the adjusted gross income deduction amount
Job search costs
Subscriptions
Unreimbursed Business: such as travel, meals, entertainment, gifts, and lodging
Union Dues
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.