|
|||
![]() Archives Contribute
|
Jai M Dev 11/08/2018 Are you ready for the new tax environment? Filing 2018 taxes will be the first time many Americans experience the full effects of the Tax Cuts and Jobs Act (TCJA) signed into law December 2017. The new law brings a number of changes to deductions, with most changes applying to individuals for tax years 2018 through 2025. Familiarize yourself with the highlights below and talk with your tax advisor about strategies to help reduce the impact on your tax bill. The tax law nearly doubled the standard income tax deduction to $12,000 for single filers and $24,000 for married couples filing jointly in 2018. Even if you itemized deductions in the past, it might not make sense to do so now. You would benefit from itemizing only if your total itemized deductions are higher than the new standard deduction amount. Home equity loan interest deductions are suspended (regardless of when you incurred the debt) between 2018 and 2025, unless you use the money to substantially improve the home and the total debt does not exceed its cost. It’s important to note that if you make a qualified charitable distribution from your IRA, the custodian of your account may not identify it on your 1099-R form. It is your responsibility to inform your tax preparer of the transaction in order to secure the tax benefits. Given the higher standard deduction and increased child tax credit, personal exemptions worth $4,050 in 2017 for each taxpayer, his or her spouse and each dependent are eliminated for 2018 to 2025. For 2018 to 2025, the TCJA doubles the child credit to $2,000 per qualifying child under age 17 (previously $1,000). This is a significant benefit, as a tax credit reduces your tax bill dollar for dollar and may provide a refund in some cases. The miscellaneous itemized deductions that are subject to the 2% AGI floor — including unreimbursed job expenses, investment expenses and tax preparation expenses — are eliminated for 2018 to 2025. Taxes can influence your financial planning decisions. Your Ameriprise financial advisor can collaborate with your tax advisor to help ensure your investment portfolio factors in your tax situation. If you are looking to work with a tax or legal professional, your advisor may be able to refer you to one. ![]() You may also access this article through our web-site http://www.lokvani.com/ |
![]() | ||
Home | About Us | Contact Us | Copyrights Help |