Here we are in the year 2018. What will the year bring?
Since you’re responsible about your finances, you might be more specifically curious about what new tax changes this year will bring. Since the Tax Cuts and Job Act passed into law at the end of 2017, some significant changes have occurred that could affect the way you file your taxes for years to come.
There’s no need to be overwhelmed, though. You have fortunately come to the right place to seek out the information you need to know. Continue reading to learn about how the 2018 tax changes will actually affect you and your family.
Changes in Deductions of Interest on Mortgages or Home Equity Loans
One of the 2018 tax changes that will affect a large portion of United States citizens has to do with property taxes.
As of December 15, 2017, there is now a cap on the deducted interest on a mortgage loan that you purchase. From that point on, you will only be able to deduct the interest you pay on a mortgage priced up to $750,000.00. Any interest you pay on a loan above that amount will not be deductible.
Additionally, it is now in effect that you will not be able to deduct any interest you pay on a home equity loan. If you are considering taking out a mortgage loan or a home equity loan, take note of these changes. Life events impact your taxes in a variety of ways, but with the new year, they will be affected somewhat differently.
Shifting of the Income Tax Brackets
Another important change is the fact that income tax might have shifted for you. Consult this breakdown by filing status (single, married, or head of household) to understand all the income tax shifts the new tax bill brings into play.
As you’ll be able to see from these charts, higher incomes are affected more than lower incomes.
Some Deductions Are Gone Entirely
With the new bill, some tax deductions are going to be completely removed from here on out. This means that you won’t be able to file deductions for them at all.
For example, you won’t be able to deduct any moving expenses as of 2018. In the past, they were allowed under certain requirements like job relocation, but this will no longer be an option.
Except under the impact of a categorized disaster, you will not be able to deduct any loss of assets from casualty or theft as of 2018.
Another removed deduction actually has to do with filing your taxes. You will no longer be able to deduct the cost of tax preparation, but that shouldn’t prevent you from hiring professionals to take care of your taxes. Even if you have done your own taxes in the past, with new tax laws in effect, you’ll want to make sure you don’t miss any important deductions or timelines.
Get Help with 2018 Tax Changes
Fortunately, you are not alone in navigating the ins and outs of the 2018 tax changes. We know how important it is to keep your finances in order and secure. Our staff has decades of tax experience and is prepared to answer any question you may have.
If you would like help with your 2017 taxes, you can get a quote here. If you have further questions about the changes made under the new tax plan, we encourage you to reach out to us today.