March 5, 2018
Have you filed your 2017 taxes yet? If not, you still have the opportunity to make sure that you lower your tax obligation as much as possible. With new tax laws in effect for 2018 and beyond, the following deductions will disappear after this tax season—check them out to see which ones may help you lower your taxable income:
1. Personal and dependent exemptions. The $4,050 in potential personal and dependency exemptions are being replaced in 2018 with a higher standard deduction. This tax season is the last chance to use them.
2. Uncapped state and local tax deductions. Starting this year, you can only claim $10,000 in deductions for state and local taxes. There is no cap on these deductions on your 2017 tax return. Check to see how much you are eligible to claim before filing this year’s taxes.
3. A larger mortgage interest deduction. After the 2017 tax year, the ability to deduct interest on up to $1 million in mortgage debt will be phased out. The new tax laws cap this deduction at $750,000.
4. General deductions for home equity loan interest. Your 2017 tax return is the last one on which you can deduct all of the interest paid on a home equity loan. Next year, unless the money you borrow is used for home improvements, you cannot deduct interest on a home equity loan.
5. Deductions for unreimbursed employee expenses. Another deduction ending this tax season: unreimbursed purchases related to your employment (the total must exceed 2 percent of your 2017 adjusted gross income).
6. Itemized deductions. With the introduction of a higher standard deduction, there are several itemized deductions that are being eliminated after the 2017 tax year, including unreimbursed qualified employee education expenses, some professional services fees, and professional dues. You may want to ask a tax professional to see if there are others that you should claim this year.
7. Moving expenses. Did you move for work in 2017? Then you may be able to deduct your moving expenses if they meet the IRS guidelines. Unless you are in the armed forces, going forward, moving expenses will not be deductible.
These are just some of the deductions and exemptions that are impacted by tax reform. Now is the time to see which ones you should take advantage of as you prepare to file your taxes. If you need help preparing your 2017 tax return, contact our firm for assistance.
BOSS is the answer to your back office headaches. Our cloud-based solution enables you to hand complex accounting tasks over to us. We work the numbers while providing you 24/7 access to your data—and all at a fixed, affordable monthly fee.
This is an administrative position providing support to all team members of the firm. This position encompasses a wide range of activities with involvement in all phases of administration...Learn More
The individual for this position must be detail oriented and have high acumen for accounting and customer service. This position plays an integral role in the firm by ensuring the client’s financial records, accounting...Learn More
June is national safety month, and it never hurts to remind your clients and community that safety always comes first. Our goal with this blog is to help you augment your marketing initiatives with a few ideas around safety. While we can’t cover every industry in a single post, we hope that you find the tips below useful and that they spark some innovative new marketing ideas!
It’s graduation season, and for many parents that means it’s almost time to start shelling out for college tuition. For those well-prepared parents with established 529 plans in place, the time has come to tap into that money pool. Of course, when it comes to tax-advantaged savings, trust that the IRS is keeping close watch, so it’s important to avoid making any rookie mistakes. It’s also important to keep saving as you move forward.
Having a remote workforce can be challenging, especially if you are trying to build a positive, collaborative work environment. So, how do you create a sense of comradery when you have staff in remote locations? These tips can help: