A New Tax Era
December 22, 2017 marked the beginning of a new tax era. The Tax Cuts and Jobs Act (TCJA) is the first major tax reform since the 1980s. Many businesses are aware of major corporate tax changes, but The TCJA may also change the way individuals file their taxes this year and through years 2018-2025.
Here are some examples of how TCJA may affect you and how you file:
Home Mortgage Interest - This is a frequently used deduction that allows filers to deduct the amount of interest paid on their mortgage. After the TCJA changes the deduction is now limited to claiming the home mortgage interest only for interest paid or accrued on the acquisition debt during those years.
Alimony/Separate Maintenance - Previously, anyone who paid alimony or separate maintenance payments were allowed to claim them on their federal taxes and were allowed a deduction. This deduction has been repealed under the new tax code.
Moving Expenses - Everyone moves at some point in their life, typically many times. For the years 2018-2025, the above-the-line tax deduction for this item has been repealed. However, Special rules apply for those in the United States Military.
These are just a few of the changes under the new tax code. If you feel you need clarification and assistance navigating these new tax laws contact us at The Center For Financial, Legal & Tax Planning, Inc. We are here to help! Call: 618-997-3436 or email firstname.lastname@example.org to schedule an appointment with a member of our professional team.