2018 Tax Reform Highlights for Individuals

Posted on: January 22nd, 2018 by Christy O'Neill No Comments

*The Child Tax Credit increases to $2,000 per qualifying child with AGI phaseout beginning at $400,000 for married or $200,000 for all other filers.
*State and Local Tax deductions are repealed except for allowing a deduction up to $10,000 for the sum of state/local property taxes and state/local income (or sales tax).
*Mortgage Deduction: The interest deduction is still in place with two changes. First, acquisition indebtedness is limited to $750,000 for homes acquired from 1/1/2018 to 12/31/2025. Second – and most notable – the deduction for interest on home equity indebtedness for tax years 1/1/2018 to 12/31/2025 is eliminated.
*529 accounts can now be used for primary and secondary education expenses up to $10,000 a year per student.
*Charitable contribution deduction: Taxpayers can deduct up to 60% of their income (formerly 50%). Donations made to a college or university in exchange for the right to purchase athletic tickets are no longer deductible.
*Medical Expense Deduction floor reduced from 10% of adjusted gross income (AGI) to 7.5% of AGI.
*Deductions that were eliminated: Unreimbursed employee expenses, tax preparation expenses, other miscellaneous deduction subject to 2% AGI cap, moving expenses and employer-subsidized parking and transportation reimbursement.

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AccuCount, Inc. strives to provide clients with sophisticated tax and financial advice with the simple goal of minimizing tax liability with a watchful eye for compliance. We will work to develop a plan that is customized to best suit your needs.

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