CHANGES TO INDIVIDUALS:
-Increased standard deduction Single: $12,000, Head of Household: $18,000, Married Couples: $24,000
-No more personal exemptions.
-Child Tax Credit doubled to $2,000 for each child 16 & under.
-Moving expense deduction has been eliminated.
-Misc.deductions that have been subject to a 2% limitation are no longer deductible, i.e. non-reimbursed employee business expenses.
-Created a $10,000 limit for the amount of state income tax & real estate taxes that are deductible on the federal return.
-Any mortgage interest expense over $750,000 is no longer deductible.
-Medical expenses remain intact as an itemized deduction.
-Education credit & Capital Gains provisions in the tax code basically remain the same.
CHANGES TO BUSINESSES:
The new tax law passed gave tax breaks specifically for regular corporations where their tax rate was reduced from 35% to 21%. To make it more fair, they created a 20% deduction to assist s-corps, sole proprietors, & partnerships to make the tax more comparable to what the regular corporations will be paying at 21%.
Please give us a call at 435-654-2053 & we can help you with all the new requirements or with any tax questions you might have!