It’s Complicated. But Our Cheat Sheet Canmake Sense Of The Biggest Shifts.
THE SWEEPING TAX CUTS and Jobs Act, which was passed in 2017 and affects tax year 2018, was the largest tax reform in the past 30 years. How it affects what you owe Uncle Sam depends on your situation. Take, for instance, something as straight forward as the standard deduction. Each year, taxpayers have the choice of either itemizing all their deductions— say, medical expenses, mortgage interest, and charitable giving—or opting for a standard deduction that knocks a flat amount off their taxable income. Last tax year, that deduction was $6,350 for single filers and $12,700 for married couples filing jointly. For 2018, it has nearly doubled, to $12,000 for single filers and $24,000 for married couples. “Last tax year, about 7 percent of people took the standard deduction, and this year TurboTax estimates about 90 percent will,” says Lisa Greene- Lewis, a certified public accountant (CPA) and tax expert at TurboTax. Here are a few other highlights you need to know.
If you’re a homeowner…
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