Believe it or not, 2018 is already two-thirds of the way over. That means before you know it, it will be time to start thinking about taxes again. The fact is it’s always a good time to think about taxes, because the more you know the better prepared you will be.
The 2019 tax season (for the 2018 tax year) stands to be a busy one. With so many changes from the Tax Cut and Jobs Act, taxpayers need to be ready. For example, there are numerous tax deductions that you might have enjoyed in the past that will no longer be available come tax time next year. Here are a few big ones to be aware of.
- Personal exemptions will no longer exist, which means taxpayers will lose $4,050 for every dependent they claim.
- The laws governing the mortgage interest deduction from a home equity loan have changed. Most current homeowners will not be affected. But anyone purchasing a home going forward will only be able to deduct mortgage interest on debt up to $750,000.
- Taxpayers can no longer claim moving expenses starting in 2018, nor can they claim job expenses.
- Getting your taxes prepared professionally is a good idea, but starting this year you can no longer claim those expenses as a deduction.
- The casualty and theft loss deduction is now only available to people living in areas that are under a presidential declaration as a disaster area.
These are just a few of the deductions that will no longer exist in 2018. For more info on how the Tax Cut and Jobs Act might affect your tax return, contact GROCO.