The Tax Cuts and Jobs Act will change what our 2018 tax returns look like when we file them next year. Most of the changes are TEMPORARY, expiring in 2025. Tax law is never carved in stone, so anything could change between now and 2025.
When I prepare your return, we'll take a look at what your 2018 return will be like, and the kinds of changes you need to prepare for. Some people will owe more tax, and some will owe less. Tax practitioners across the country are waiting for IRS to issue guidelines on certain issues that were not made clear in the new law.
These tax provisions are GONE: personal exemptions; itemized deduction phase-out rules; additional child tax credit; miscellaneous itemized deduc-tions; most theft and casualty losses except for federal disaster areas; deduction of home equity interest; moving expenses, and how alimony paid and received are treated.
Instead, tax rates are lower, and the Child Tax Credit has been doubled with a higher phaseout. Standard deductions are straight across the board -- MFJ, $24,000; HOH, $18,000; S - $12,000 and MFS $12,000. Many people who itemized their deductions on Schedule A in the past will no longer be able to do so.
Everyone's tax picture is different, and the new law will affect everyone differently. Try to think of it as a new adventure -- like it or not, we're stuck with it!
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