What will 2018 DO to YOU? Want YOUR numbers?
Courtesy of Melissa Schiff, CPA, PC
We are offering a projection that will show you what your tax would be if the new laws were applied this year. We will use your 2017 data and produce an easy-to-read summary.
This is a projection. If you would like us to do this at the time of tax preparation for 2017 we would be happy to.
Bonus: If you request it when you drop off your tax info we will do the calculations for a nominal charge!
Some of the factors that will change tax returns:
• Standard deduction – has doubled, meaning many people who itemized in the past will not do so any longer
• Personal & Dependent Exemptions – gone. You no longer get to exempt a dollar amount from your income for each person on your return
• Child Tax Credit – repealed and replaced with a new and “improved” Child Tax Credit
• Changes in how much of the Child Tax Credit is refundable
• Non-Child Tax Credit – If you have dependents who are not your children (or simply no longer children) you may qualify for a new credit
• Entertainment Expenses – Generally, gone with some exceptions
• Meals – increases in which ones are limited to 50%
• Travel to casinos will be deductible – under certain circumstances
• Deductible limitation for charitable contributions was increased
• Repeal of individual mandate provision in the Affordable Care Act (Obamacare) – beginning in 2019 the PENALTY is gone!
• New 20% deduction – Watch for more info on this later!
• Miscellaneous deductions such as union dues, safety deposit boxes – gone
• Medical expense deduction – returns back to 7.5% of adjusted gross income
• Limitations on mortgage interest deductions
• New tax brackets for almost everyone!
• Capital gain tax rates no longer follow the current year tax brackets
• Limitations for deducting state/local income tax and property taxes
• 529 Distributions – expanded to include elementary, secondary, and private school tuition
Melissa A. Schiff, CPA, PC
2597 Old SR 37 South
Martinsville, IN 46151
Phone: (765) 349-8272 Fax: (765) 342-1666