Dwell Accounting Service, Corp.

Please be aware that the threshold for medical expense deduction has been reduced from 10% of AGI in 2017 to 7.5% of AGI in 2018. Also for those employees who use their home for the benefit of their employer will no longer allow to deduct home office expenses. Unreimbursed Employee Business Expenses and other Professional Fees have been suspended for 20182025.

Itemized deductions- many Taxpayers who usually benefit from itemizing deductions won’t be able to itemizing his/her deductions due to the New Tax Reform. Taxpayers cannot claim a deduction for local and State Taxes, Property Tax or Sales Tax paid over $10,000. Please note: This provision will be completely eliminate after 2025. ... Let make a little analysis here, in a hypothetical case Mr. and Mrs. XXXX work in New York City and their home is in Nassau Long Island. Their NYS Tax is 19,000. and their Property Tax is 12,000. Under the new Tax reform Mr. and Mrs. XXXX can only deduct $20,000. out $31,000 that they usually deduct on itemizing deduction on schedule A. They best option will be taking the Standard Deduction which is $24,000. Unfortunate these fellow Taxpayers will have $7,000. buried in the sinkholes of the New Tax Reform.

Moving is something that no one enjoys. But if our employer moves out of our jurisdiction, in most cases we have been forced to move along with the company that we work for. Well, I have a bad news, Moving expenses- will be suspended for 7 year from 2018-2025 except for active members of the Armed Forces.

If you have a deep package and having a second thought about your marriage, try to work it out. Due to the new Tax Reform, getting a divorce should be your last option. TCJA made a remarkable change in alimony for those Taxpayers paying alimony as well as for those Taxpayers receiving alimony. The new Tax Reform eliminates alimony from Tax Return, the payer of alimony won’t be able to deduct his/her payment as a tax deduction neither the recipient of alimony won’t have to include in her/his taxable income. Please note: This new Tax Legislation with regard to alimony will be in effect after 12/31/2018.

Overview- Personal Tax Return - Just a quick pick of the most common cases. NO Personal exemptions 2018 Standard deduction will increase as follows: $12,000 for singles, and MFS $18,000 for heads of households and $24,000 for MFJ... Child Tax Credit increased from $1,000 in 2017 to 2,000 in 2018, in addition $1,400. Will be refundable under the new Tax Reform. This credit begins to phase out- For singles with AGI over $200,000 and married couples with AGI of $400,000.