Tuesday, May 29, 2018

Tax year 2018

The new Tax Cuts and Jobs Act increased the Standard Deduction for Married Filing Jointly is now $24,000; for Head of Household it is now $18,000 and for Single taxpayers or Married Filing separately, it is $12,000. With these changes, it is expected that more taxpayers will be choosing to take the Standard Deduction instead of itemizing their deductions.

For those taxpayers who still choose to itemize their deductions, it is important to note that an entire category of expenses are no longer deductible as itemized deductions in 2018.  Wage-earners who have qualified to deduct unreimbursed employee expenses in the past, need to be aware that these items are no longer deductible.  One of the most common of these is union dues.  Other items such as uniforms and professional licenses and training paid for by the employee are not deductible either.

If you are concerned that these changes will result in higher taxes for you in 2018, then it may be advisable to review your income tax withholding from your wages. Making adjustments to the amount of your withholding now can help avoid a liability and possible interest and penalties being due for the year. Taxpayers can also make estimated tax payments to correct this situation. The tax professionals at Ken R. Ashworth & Associates are available to assist you with your tax planning needs.


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