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Tax Changes Affecting Upcoming Tax Returns

the latest tax changes

April 15th is tax day for most of us, and it’ll be here before you know it. Whether you fill out your income tax returns by hand, use software, or hire a professional, only you can gather the information needed. Before starting, you should be aware of tax law changes that will affect individual 2018 income tax returns. I found a great article detailing the tax changes and you don’t have to be a CPA to understand it! You’ll find the article here: The Motley Fool.

A few of the tax changes

  • There are still seven income brackets but the tax rates have changed.
  • The standard deductible has almost doubled, but before you get too excited….
  • The personal deduction has been eliminated.
  • The child tax credit has doubled.
  • College tuition and fees are no longer deductible.
  • Mortgage interest is still deductible, but there are limits.
  • The amount of charitable contributions you can deduct has increased.
  • Allowable medical expense deductions are no more than 7.5% of your AGI (adjusted gross income).
  • Deductions for state and local taxes, including property taxes, are capped at $10,000.

This may be the year to try tax software

With all the changes, this might be the time to try tax software. Turbo Tax is the most popular, but there are other applications available in a wide range of prices. For a simple return, some are even free to use. To compare the features of several popular tax software programs, see the reviews at nerdwallet.com.

Or, if it’s all too much, leave it up to the professionals

Even if you hire a professional you’ll still need to rummage through your files for 2018 tax-related receipts and papers. I clean out all the files in my home office while I’m at it. I shred papers I won’t need again and put others in a file cabinet in the basement.

If you’re looking for professional help start by asking friends if they can recommend someone. If that fails, here’s some advice on where to get tax preparation help: Consumer Reports. Check the Financial Matters category at HabiLinks, our web guide, for national tax preparation companies. If you’d rather work with a smaller company or an individual, search the web for “tax preparation services (your city).”

See HabiLinks web guide for more links you can really use

The internet is full of great resources, but page after page of search results can be too much of a good thing! We search for useful information in eighteen lifestyle categories, so you don’t have to. When we find the link with the most useful content it becomes a HabiLink, one of the chosen few! Unlike other web directories, we don’t accept payment for listings. We simply think they’re the best at what they do. You’ll find more information on the latest tax changes in the Financial Matters category at  HabiLinks. When you need to know about the latest tax changes, depend on HabiLinks for links you can really use.

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Comments

  1. Joan Herron says:

    Great info….good to know. It was all so confusing before. Thank you !

  2. Kate says:

    Job expenses have also been eliminated, like dues for belonging to unions or professional organizations, uniforms and equipment (like a stethoscope for example if you are a doctor or nurse and that you are expected to purchase on your own).

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