As you know, tax laws changed in 2018. This means there are a few developments you’ll need to account for as you file this year, so we want to share a few key points with you today.
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The holidays are over and we’re now approaching a much less jolly time of year: tax season.
As you prepare to file for your refund and pay this year’s taxes, you’ll need to be aware of these developments.
One key change is that the standard deduction has been increased to $12,000 for single people and $24,000 for married couples.
Depending on your income, your debt, the number of dependents you have, and a few other factors, this increase could either positively or negatively impact your circumstances.
To learn more about these changes and how they’ll impact you, reach out to a local tax professional.
Moving on, the mortgage interest deduction is now down from $1 million to $750,000. If you have $1 million in combined loans already, you will be grandfathered in. Otherwise, though, this change will apply.
Also, while homeowners were previously able to write off all state income taxes, you can now only write off up to $10,000.
We hope the information we’ve offered to you today has been helpful, but remember: We’re not tax professionals. To learn more about these changes and how they’ll impact you, reach out to a local professional who can guide you through these developments as they pertain to your circumstances.
If you have any other questions or would like more information, feel free to give us a call or send us an email. We look forward to hearing from you soon.
