March 5, 2018
Have you filed your 2017 taxes yet? If not, you still have the opportunity to make sure that you lower your tax obligation as much as possible. With new tax laws in effect for 2018 and beyond, the following deductions will disappear after this tax season—check them out to see which ones may help you lower your taxable income:
1. Personal and dependent exemptions. The $4,050 in potential personal and dependency exemptions are being replaced in 2018 with a higher standard deduction. This tax season is the last chance to use them.
2. Uncapped state and local tax deductions. Starting this year, you can only claim $10,000 in deductions for state and local taxes. There is no cap on these deductions on your 2017 tax return. Check to see how much you are eligible to claim before filing this year’s taxes.
3. A larger mortgage interest deduction. After the 2017 tax year, the ability to deduct interest on up to $1 million in mortgage debt will be phased out. The new tax laws cap this deduction at $750,000.
4. General deductions for home equity loan interest. Your 2017 tax return is the last one on which you can deduct all of the interest paid on a home equity loan. Next year, unless the money you borrow is used for home improvements, you cannot deduct interest on a home equity loan.
5. Deductions for unreimbursed employee expenses. Another deduction ending this tax season: unreimbursed purchases related to your employment (the total must exceed 2 percent of your 2017 adjusted gross income).
6. Itemized deductions. With the introduction of a higher standard deduction, there are several itemized deductions that are being eliminated after the 2017 tax year, including unreimbursed qualified employee education expenses, some professional services fees, and professional dues. You may want to ask a tax professional to see if there are others that you should claim this year.
7. Moving expenses. Did you move for work in 2017? Then you may be able to deduct your moving expenses if they meet the IRS guidelines. Unless you are in the armed forces, going forward, moving expenses will not be deductible.
These are just some of the deductions and exemptions that are impacted by tax reform. Now is the time to see which ones you should take advantage of as you prepare to file your taxes. If you need help preparing your 2017 tax return, contact our firm for assistance.
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Once your taxes have been filed, first, take a moment to breathe a big sigh of relief…and then enjoy some Tax Day (April 15, 2019) discounts. There’s nothing like a good deal to take the sting out of tax obligations. Below, we’ve compiled a short list of best food and drink deals, taken from offer.com.
Zack Poschin is our Staff Accountant, and he’s been a member of the Rulien + Associates team since June 2015. Zack enjoys the flow of accounting from bookkeeping and payroll to tax returns. He moved to Alaska in December 2014 after earning a Bachelor's of Science in Accounting from Humboldt State University in California. Zack strives for efficiency during his office hours and seeks adventure in hiking, photography and exploring Alaska in his personal time. We love spotlighting our staff so our clients can get better acquainted with us. Zack intrigued us with his responses to our questions in a recent chat, and we wanted to share the conversation.
The long stretch from the end of the winter holiday season until the next break in your routine can feel like eternity. If you feel the need to reboot your enthusiasm as the spring season arrives, try these tips: