2018 Tax Changes are now in effect. With proper preparation. Taxpayers should get a refund or pay less. Some of the tax deductions you would normally tax are almost gone.
Like job expenses, the costs you’ve paid to your tax preparer, when combined with other miscellaneous deductions were deductible to the extent the total exceeded two percent of your AGI. This deduction is no longer allowed. I am going to go over what you can no longer deduct on your 2018 tax return.
Small Business will not be affected by 2018 Tax Changes.
If you have a small business or get 1099 income from commission sales, you will not be an effect from 2018 tax changes. The IRS Code states that any expense that needs to run your business is deductible.
Itemized Deduction is what effected.
Unreimbursed employee business expenses are the area most affected by the changes. You will not be able to use working at home.
Our side salespeople might be able to take the tolls and miles on your car. Tolls, cell phone, are other deductions you might not use any more.
Paying Less 2018 Tax Changes
The IRS increased the amount of the Standard Deduction. This is the amount you can deduct with adding form Schedule A. Taxpayers deducts for charity, interest and work expenses go on this form. Going forward you might not be able to deduct it.
Standard Deduction Less Tax
Congress bill intent was to save money for the US taxpayer. What they did was to lower the tax percentage. Married Filed Jointly goes from $12000 to $24000. What that means you will not pay tax on the first $24000 of income.
Example of 2018 Tax Changes.
If a husband and wife make $60,000 a year income. You would subtract $24000 standard deduction from $60,000 and pay tax on $36,000. The tax rate would drop to 12 percent. Now your tax bill to the IRS is only $4320. Old system $7200 is your tax bill. There is now a saving to your pocket is $2880.
This is just one example of how the new tax laws could affect you. Getting more details could be as simple as calling a tax professional.
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