It’s safe to say this could be one of the most interesting tax filing seasons in the last several decades. This is the first year of filing taxes under the new Tax Cut and Jobs Act. And that means there are significant changes you need to be aware of this tax season.
But first, the tax fling season begins January 28 and returns are due on April 15. The shutdown may or may not cause a delay in getting your refund. But it will definitely reduce your chances of getting assistance from the IRS. So what about those big changes? Here’s what you need to know.
There is no more personal exemption. That means you will no longer be able to claim a personal exemption of $4,050 for you and each of your dependents.
You can now get a $500 temporary credit for non-child dependents, such as adult children with disabilities and elderly parents.
You can no longer claim a deduction on all your state and local taxes (SALT). You can claim up to $10,000, but anything over that amount in no longer deductible.
Your mortgage interest is still deductible, but only up to $750,000 of your mortgage debt. The amount was lowered from $1 million last year. But this does not affect homes already purchased before 2018.
Several other tax deductions have also been eliminated, including:
- Tax preparation
- Alimony payments
- Disaster expenses
- Moving expenses
The post The Big Changes You Need to Know Before Tax Day first appeared on Advisors to the Ultra-Affluent – Groco.
