Oct 302018
 

Things to do now for next years taxes. Start by making a checklist of all your priorities. You may need a paycheck checkup. Following the tax low changes passed by President Trump and the Congress, you should do a paycheck checkup using the IRS’s Withholding Calculator and, if necessary, complete a new W-4 form. The calculator helps determine the right amount of withholding. You should check your withholding if you, are a two income family, have two or more jobs at he same time or only work part of the year, claim credits like the child tax credit, have dependents age 17 or older, itemized deductions in 2017, have high income or a complete tax return, or had a large tax refund or tax bill for 2017.

You should note that the standard deduction amount increased for 2018, for all filers. For single or married filing separately–$12,000–for married filing jointly or qualifying widow–$24,000, or head of household–$18,000.  Due to the increase in the standard deduction and reduced usage of itemized deductions, you may want to consider filing an new Form W-4. The Deduction for personal exemptions suspended. For 2018, you can’t claim a personal exemption deduction for yourself, your spouse, or your dependents. Changes to deductions. For 2018, the following changes have been made to itemized deductions that can be claimed on Schedule A.

Your itemized deductions are no longer limited if your adjusted gross income is over a certain amount. You can deduct the part of your medical and dental expenses that is more than 7.5 percent of your adjusted gross income. Your deduction of state and local income, sales, and property taxes is limited to a combined, total deduction of $10,000.  Moving expenses are no longer deductible. For 2018, you can no longer deduct your moving expenses unless you are a member of the Armed Forces on active duty.

For 2018, the maximum credit increased to $2,000 per qualifying child for the Child Tax credit and additional child tax credit. The maximum additional child tax credit increased to $1400.


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