I’m sure by now you’ve heard someone complain about their tax refund. Here are a few major changes to the federal tax code that may affect your 2018 returns.
7 Important Deductions Going Away
Dependent and personal exemptions
Interest on Home Equity loans not used to build, buy or improve your home
Mortgage Insurance Premiums (MIP)
Exclusion for forgiven debt
Miscellaneous itemized deductions – i.e. unreimbursed employee expenses
Tax preparation and investment fees
New Deduction Rules
Taxpayers who itemize their deductions can only deduct up to $10,000 on a combination of the following:
State income taxes
Property tax (If you pay high property taxes you will feel these effects more. This is common in states like California and New York.)
SINGLE: In 2017 $6,350 — In 2018, $12,000
MARRIED: In 2017 $12,700 — In 2018, $24,000
HEAD OF HOUSEHOLD: In 2017 $9,350 — In 2018, $18,000
The Child Tax Credit
The per child credit in 2017 was $1,000, that has been increased to $2,000 for 2018.
Tax Day Deadline – April 15th
Some USPS locations will be open late to postmark your tax return. Approved Post Providers do not offer late postmarking, so verify their last collection hours. If you file electronically, file no later than 11:59 pm.
Paycheck Check-up – July
In July, ensure your withholdings are up to date and adjust if necessary.
Extension Deadline – October 15th
This is the last day to file your tax return if you received an extension from the IRS. Need more help making sense of it all? Consider using a tax professional. 20% of income tax returns prepared on paper have mistakes, which can lead to overpaying taxes or penalties. If you don’t have one yet, call me for a great referral!
All information is general in nature and should be taken as legal advice or guaranteed. Readers should not rely solely on this information. Contact a tax professional for more context on the tax law changes. Sources: IRS & USPS