Getting a refund when filing your taxes is not usually seen as a bad thing. If you received a large refund after filing your 2017 income tax return, you’re probably enjoying the influx of cash. Nevertheless, it is important to keep in mind that this also indicates that you were essentially giving the government an interest-free loan. In the past, when getting a large refund for a previous tax year, … Read more
Tax-advantages of making IRA contributions Retirement plans like IRAs allow your money to grow tax-deferred — or, for Roth accounts, tax-free. Deductible contributions will lower your 2017 tax bill, but even nondeductible contributions can be beneficial. The last day to make these contributions is April 17, 2018. Don’t lose the opportunity The 2017 limit for total contributions to all IRAs generally is $5,500 ($6,500 if you were age 50 or older … Read more
Home-related deductions are some of the most common savings on taxes each year. If you own a home, you are eligible for several tax breaks when you file your 2017 return. Here’s how you should be taking advantage of these savings for the 2017 tax year. Home-related tax breaks for 2017 vs. 2018: Property tax deduction. For 2017, property tax is generally fully deductible. Unless you’re subject to the alternative minimum … Read more
If you suffered damage to your home or personal property last year. You may be able to deduct these “casualty” losses on your 2017 federal income tax return. For 2018 through 2025, however, the Tax Cuts and Jobs Act suspends this deduction. Except for losses due to an event officially declared a disaster by the President. What is a casualty? It’s a sudden, unexpected or unusual event, such as a natural disaster … Read more
If you purchased qualifying property by December 31, 2017, you may be able to take advantage of Section 179 expensing on your 2017 tax return. You’ll also want to keep this tax break in mind in your property purchase planning, because the Tax Cuts and Jobs Act (TCJA), signed into law this past December, significantly enhances it beginning in 2018. 2017 Sec. 179 tax benefits Sec. 179 expensing allows eligible taxpayers to … Read more
Tax Cuts and Jobs Act Current Effects Under the Act, starting in 2018, the limit on qualifying acquisition debt is reduced to $750,000 ($375,000 for a married taxpayer filing separately). However, for acquisition debt incurred before Dec. 15, 2017, the higher pre-Act limit applies. This means you can refinance up to $1 million of pre-Dec 15, 2017 acquisition debt in the future. Also will not be subject to the reduced … Read more
Whether you had a child in college (or graduate school) last year or were a student yourself, you may be eligible for some valuable tax breaks on your 2017 return. One such break that had expired December 31, 2016, was just extended under the recently passed Bipartisan Budget Act of 2018: the tuition and fees deduction. But a couple of tax credits are also available. Tax credits can be especially … Read more
Working from home has become commonplace. But just because you have a home office space doesn’t mean you can deduct expenses associated with it. And for 2018, even fewer taxpayers will be eligible for a home office deduction. Changes under the TCJA For employees, home office expenses are a miscellaneous itemized deduction. For 2017, this means you’ll enjoy a tax benefit only if these expenses plus your other miscellaneous itemized … Read more
Under the Tax Cuts and Jobs Act (TCJA), individual income tax rates generally go down for 2018 through 2025. But that doesn’t necessarily mean your income tax liability will go down. The TCJA also makes a lot of changes to tax breaks for individuals, reducing or eliminating some while expanding others. The total impact of all of these changes is what will ultimately determine whether you see reduced taxes. One interrelated … Read more
