As you may be aware, Congress recently passed new legislation focused on income taxes and tax deductions for individual taxpayers and employers. Here are just a few of the changes covered in that legislation:
- Higher standard tax deductions. The standard tax deduction doubles, to $12,000 for individuals or $24,000 for married couples who file jointly. The personal exemption (which was going to be $4,150 in 2018) has been repealed.
- Shifting mortgage interest deductions. New homeowners will be allowed to deduct interest on mortgages up to only $750,000 under the new law, as opposed to $1 million in past years. Homeowners with an existing debt of $1 million on a single mortgage, or a combined debt of $1 million on a first and second mortgage, will be grandfathered in, however.
- Elimination of the deduction for investment advisory fees. Miscellaneous Deductions on Schedule A — the category that included investment advisory fees in the past — has been eliminated under the new law.
Some other areas that Program participants may be interested in include:
- State and local taxes
- Medical expenses
- Pass-through Tax Cut
Consult your tax advisor if you have additional questions about how the new tax law could affect you.