Tax News

Senior Citizens $6,000 additional Tax Deduction

This is in addition to your Standard or Itemized deductions.
(Not available for high income earners)

Overtime Pay Is Not Taxable

Up to $12,500 for Single Filers & up to $25,000 for Married Filing Jointly.
(Not available for high Income earners)

Tip Income Is Not Taxable

Up to $25,000 per Taxpayer
(Not available for high Income earners)

Automoble Loan Interest May Be Tax Deductible

Up to 10,000 loan interest for new cars. Must be made in America
(Not available for high income earners)

Child Tax Credit

Many taxpayers may receive a tax credit of up to $2,200 for each child that they claim as dependents on their tax returns if under 18 years old. Other dependents equal up to $1,700 tax credit.

State and Local Tax Deductions

Taxpayers who itemize their taxes can deduct PROPERTY AND REAL ESTATE TAXES, and either STATE and local income or sales taxes. These will be deductible from $10,000 up to $40,000 now.

Mortgage Deductions

Taxpayers who itemize their taxes can deduct interest payments on mortgage debt of up to $750,000.
Also, homeowners may not claim a deduction for existing and new interest on Home Equity loans, beginning Jan. 1, 2018.

Medical Expense Deduction

Taxpayers can deduct medical expenses that exceed 7.5 percent of AGI.

Divorce

Effective on January 1, 2019 Alimony is no longer tax deductible at all, unless you divorced prior to this date.

Pass-Through Business Taxes

Businesses organized as sole proprietorships, LLCs and partnerships don’t pay corporate tax rates. Instead, the owners pay individual income taxes on their share of business income – they’re called pass-through business taxes. Those tax rates are the same as the individual income tax rates.

Retirement Plan Distributions

Early withdrawals will be subject to regular income tax plus 10% penalty.

Charitable Donations

More donations to charity are now Tax deductible than before.

Solar Tax Credits

Are now expired