The Tax Cuts and Jobs Act of 2017 ushered in a broad range of changes impacting virtually all American taxpayers. Along with rate adjustments across seven tax brackets, one of the biggest changes is the elimination of the personal exemption and the increase in the standard deduction, which has nearly doubled to $12,000 for single filers, $18,000 for heads of household, and $24,000 for married taxpayers filing jointly. The increase in the standard deduction also affects charitable tax deductions this year.
In addition, many deductions for taxpayers who itemize have been capped, such as the state and local tax (SALT) deduction; or eliminated altogether, such as miscellaneous itemized deductions subject to 2% of adjusted gross income (AGI) and the home equity loan interest deduction.
There’s no question that changes to the tax code can make tax and investment planning complex and confusing for taxpayers. We’ve updated our “2018 Income Tax Strategies” report to reflect the recent changes. To download a copy CLICK HERE.
If you have a question about how to integrate these strategies, we encourage you to schedule a tax-planning meeting to discuss how the new tax laws may impact your financial and investment strategies and what you can do today to make sure you pay no more in taxes than absolutely necessary. Click here to schedule a meeting online or call (830) 609-6986.*
*This article is designed to provide accurate and authoritative information on the subjects covered. It is not, however, intended to provide specific legal, tax, or other professional advice. For specific professional assistance, the services of an appropriate professional should be sought.