The new tax code that passed at the end of 2017 for this year has made the tax world up…
The new tax code that passed at the end of 2017 for this year has made the tax world up and down, with old strategies that are no longer applicable, according to tax profits.
“The biggest mistake people can make is that the old rules and strategies continue. Things have changed a lot,” says Jackie Perlman, chief tax scientist for H & R Block. She warns those who use the old rules that can pay more in taxes .
Many in high-tax states like New York, New Jersey and Connecticut have long reduced their federal taxes by ignoring standard deductions and specifying state and city taxes as well as different taxes, reducing their federal tax bills. But now taxpayers can use the new standard deduction , says tax authorities.
For individuals in highly rated states, it was an easy decision to specify, says Bernard Kiely, an Authorized Public Accountant in Morristown, NJ.
But with many of these deductions reduced or eliminated, and with the standard deduction greatly expanded the issue is less straightforward.
Defined deductions are now limited to $ 1
0,000. Kiely says is that this also makes the standard deduction better for many.
The trump tax changes almost double the standard deduction – $ 24,000 for joint filers and $ 12,000 for single filers. Those over 65 get an extra break.
Kiely said that he and his wife “will take the standard deduction. It will be the first time we did it in 15 years.”
“The big thing is, various detailed deductions are gone for employees,” said Kiely. “So refunded employee deductions and advisory fees are no longer deductible. “
” The most important thing is to make the calculation and find out how things have changed for you – and if you’re going to use a standard deduction, “H & R Block Perlman adds.