2018 Tax Cuts and Jobs Act Changes to be Aware of

As you are  meeting with your clients this year you should make them aware of some of the 2018  changes that will or may affect their federal return for next year.

Here are some of the changes that go  into effect in 2018 from the Tax Cuts and Jobs Act:

 
• Standard  Deduction will be increased to $12,000 for single individuals and $24,000 for  married filing joint filers.
 
• Exemptions  are no longer applicable.
 
• Child  tax credit was increased to $2,000 for eligible children under 17 of which  $1,400 may be refundable.
 
• A  $500 nonrefundable credit will be available for eligible children that are 17,  18 or full time students ages 19 -24 and other eligible dependents.
 
• Itemized  deduction for taxes on Schedule A will be limited to $10,000.
 
• Job  expenses and miscellaneous itemized deductions subject to 2% AGI floor will no  longer be deductible on Schedule A. This includes employee business expenses  that were reported on Form 2106 such as vehicle expenses, travel expenses,  meals and entertainment, job education, etc.
 
• For  2018 only casualty losses that occur in a presidentially declared disaster zone  will be deductible as an itemized deduction on Schedule A.
 
• An  itemized deduction for mortgage interest will only be allowed for a taxpayer’s  principal home.
 
• An  itemized deduction will no longer be allowed for interest on a home equity  loan.

See the New Federal Tax Law Changes Included  in the Tax Cuts and Jobs Act page in the Tax Resource Center for a more complete listing of the tax provisions included in the Tax Cuts and  Jobs Act.