- Joint Filers: standard deduction of $24,000
- Single filers: standard deduction $12,000
- Head of household filer: standard deduction $18,000
- No personal exemptions
- Child tax credit $2,000 per qualifying child under 17
- Mortgage Interest Deduction: Applies to mortgage debt up to $750,000 on mortgages after 12/31/17. Previous mortgages grandfathered in. (itemizers only)
- Charitable contributions: allowable up to 60% of AGI (itemizers only)
- Medical expenses: deductible after 7.5% of AGI (itemizers only)
- State and local taxes: Income, sales and property taxes deductible to $10,000 max (itemizers only)
- Home Equity interest no longer deductible. (itemizers only)
- Casualty and theft losses (except those attributable to a federally declared disaster) (itemizers only)
- Unreimbursed employee expenses no longer deductible. (itemizers only)
- Tax preparation expenses no longer deductible. (itemizers only)
- Other miscellaneous deductions previously subject to the 2% AGI cap no longer deductible. (itemizers only)
- Moving expenses no longer deductible. (itemizers only)
- Employer-subsidized parking and transportation reimbursement no longer deductible. (itemizers only)
- College Expenses: Lifetime Learning Credit and Student Loan Interest Deduction stay the same. However, 529 Plan money can now be used for private school, tutoring for K-12, and other levels of education.
- Affordable Care Act – in 2019 tax year, no penalty for lack of insurance coverage; 2018 still has penalty
- Capital Gains–Short-term: capital gains taxed as ordinary income (affected by new income tax table)
- Capital Gains—Long term: (see chart)
The Joint Committee on Taxation estimates that 94% of households will claim the standard deduction in 2018, up from 70% in 2017.
Next time…corporate and business tax changes.
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The IRS is working on implementing the Tax Cuts and Jobs Act (TCJA). This major tax legislation will affect individuals, businesses, tax exempt and government entities.
Tax season is open. Most tax reporting forms are either in the hands of taxpayers or in the mail. Here’s what you need to know about tax form due dates and what to do if yours is late.
Source: When To Expect Your W-2, 1099 & More Tax Forms In 2017 (And What To Do If They’re Missing)
Just ready a great article by the Taxgirl. Here’s the beginning of it…be sure to click the link and read it all!
Ready to file your tax return? Here are 10 quick facts about the upcoming tax season that you need to know:
1. Tax season opens on January 23, 2017. Taxpayers who e-file can submit returns to their software provider or tax professional before that date, but the returns will not be accepted by IRS until the systems open. More than four out of five taxpayers are expected to e-file their return either on their own or with the help of a tax professional.
2. Taxpayers have a few extra days to file their 2016 returns this year. The due date is April 18, 2017, and not April 15, 2017. That’s because April 15, 2017, falls on a Saturday which would normally result in a move to the following Monday (April 17, 2017). However, this year, Emancipation Day falls on Monday, April 17. Since that’s a legal holiday in the District of Columbia, the tax filing deadline will be pushed ahead for all individual taxpayers to Tuesday, April 18, 2017.
3. FreeFile is now open. The program, available through the Internal Revenue Service (IRS) website, partners with commercial partners to provide free filing software for about 100 million taxpayers with incomes of $64,000 or less. Seven in ten of the nation’s taxpayers are eligible for IRS FreeFile.
Ready the rest at: http://www.forbes.com/sites/kellyphillipserb/2017/01/15/10-quick-facts-about-the-upcoming-tax-season-that-you-need-to-know/#3792bcad3750
As J.K. Rowling’s Ron Weasley, Rupert Grint faced a number of challenges, including keeping the Philosopher’s Stone from Professor Quirinus Quirrell, finding and destroying the Horcruxes of Lord Voldemort with Harry and Hermione, and fighting in the Battle of Hogwarts. Grint, however, has come up against a Voldemort-sized obstacle in the form of Her Majesty’s Revenue and Customs (HMRC). Grint has gone to court seeking a refund worth approximately £1 million ($1.33 million U.S.) as part of a tax dispute. The dispute focuses on Grint’s choice to use an accounting period shorter than 12 months between 31 July 2009 and 5 April 2010. Grint made millions as part of the Harry Potter franchise, shooting the final films, Harry Potter and the Deathly Hallows Part 1 and Part 2, in 2009 and 2010. Grint’s take was said to be just below co-star, Emma Watson, who was named Hollywood’s highest paid female actor by Vanity Fair after pulling in a cool £20 million ($26.60 million US).
Read More: Accio! Harry Potter Star Rupert Grint Hopes To Summon £1m Tax Refund – Forbes
Feeling stuck? Unstuck is an app I’ve used and find quite useful. More information here:
Unstuck is an in-the-moment digital coach that’s ready every time we’re feeling stuck. The app helps us see and solve situations with fresh perspective through provocative questions, targeted tips, and action-oriented tools. It’s an approach that works for all kinds of issues, large and small, so we can live better every day.Watch this video on the purpose behind Unstuck
Source: Free Unstuck app for iPhone, Android, iPad, and Web
All this great stuff is part of a national public service campaign sponsored by the American Institute of CPAs (AICPA) and The Advertising Council. The goal of the campaign is to encourage and help Americans aged 25 to 34 to take control of their personal finances.
Check out Feed the Pig at : AICPA – FEED THE PIG
Prince Rogers Nelson, better known to the world as Prince, died on April 21, 2016, at his home at Paisley Park. According to probate documents filed by his sister, Tyka Nelson, Prince died without a will. What will happen to his assets? And could it happen to you?
Read More: Sister Says Prince Died Without A Will: What It Means And Why You Shouldn’t Let It Happen To You – Forbes
Do you need to file a tax return in 2016? Here’s what you need to know.
Check it out at Do You Need To File A Tax Return In 2016? – Forbes
Find the best states to retire in, based on categories such as health care, crime, cost of living, taxes and weather.
Source: Can’t decide where to retire? This may help