Learn more about how tax changes will affect you

By | February 5, 2018

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•            Child Tax Credit – repealed and replaced with a new and “improved” Child Tax Credit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