Just like that, once again, it’s tax season. And this year, we’re operating under a new set of rules. Lawmakers axed a slew of deductions, but also added new ones. Let’s review the four main deductions that landed on Capitol Hill’s cutting room floor. (And remember: It’s always wise to consult a tax law attorney when a new code comes into effect.)
2018 Tax Deduction Elimination #1: Miscellaneous Employee Expenses
Much to the chagrin of contractors and sales professionals, legislators gave the old heave ho to a slew of employment-related itemized deductions. No longer can you lob mileage, professional dues, investment fees, and other business expenses from your income calculation.
On the upside, the new tax code’s standard deduction is higher than past years so the eliminations might not be a problem for many folks. However, if not being able to deduct them will affect your bottom line, give us a call. We’ll review your situation and devise compliant, alternative options using the new code.
2018 Tax Deduction Elimination #2: Moving Expenses
In the past, taxpayers could deduct moving expenses from their income tax calculation. Unfortunately, this is no longer the case. But again, its elimination may be covered by the raised standard deduction.
2018 Tax Deduction Elimination #3: Itemized Personal Expenses
Personal deductions were popular among households, and typically allowed families to deduct up to $4,000 per family member. But, you got it: law makers axed most of them. However, policymakers increased the per child compensation, which is now a credit, not a deduction.
2018 Tax Deduction Elimination #4: Property Tax Deduction
Under the old code, taxpayers could subtract unlimited property tax from federal income tax calculation. The amount has now been capped at $10,000. However, there are other strategies you can use to make up for this loss. Give us a call to discuss.
You Still Have Tax Options
Looking at this list, you may feel disparaged. Don’t. There are new credits, deductions, gifting, and tax deferment opportunities now at your disposal — especially for small business owners. We know the ins-and-outs of the new tax code and will make sure you’re paying the least amount possible while remaining compliant.