8 Ways the Tax Cuts and Jobs Act Could Change Your 2018 Taxes
Dear <<First Name>>,
The sweeping tax plan that Congress passed last December includes lower tax brackets and a nearly doubling of the standard deduction. But plenty of taxpayers who are starting their tax planning for 2018 are hitting complications, due to several provisions that remain unclear.
Here's a run-down of what you need to know as you prepare for the upcoming tax season. If you have additional questions, please schedule a time to meet with us.
1. Entertainment is no longer deductible. For example, if you take a client to a ball game, the meals can be deducted but only if paid separately from the tickets.
2. Miscellaneous itemized deductions are eliminated. Any unreimbursed employee expenses and investment advisory fees are no longer deductible.
3. The child tax credit doubles to $2,000 per qualifying child. Up to $1,400 of the child tax credit can be received as refundable credit (meaning it can go toward a tax refund).
4. Hobby expenses are no longer deductible. But you must report ALL income!
5. State and local taxes are capped. (SALT) is now limited to $10k starting in 2018 versus today where there is no limit.