2018 Tax Change Questions...

[LionsandBear]

I'm getting my 2018 docs together to take to my Tax Preparer and I'm a little nervous about these changes I keep hearing about. I want to know if any of my previous deductions will be reduced or eliminated as a result of the changes. Thanks in advance!

1. Married with 1 Dependent
2. 6 figure + income
3. 2 rental properties and a primary all with mortgages
4. 2 Student Loans
5. Small charitable contributions

 

[LionsandBear]

Yes, I'm paying someone. My appointment isn't for another month. Figured some in here are either in the field or in the same boat and have already done their taxes for 2018.

 

[Lionguy32]

I doubt anyone with a six figure + income has done their taxes this early.

 

[psualt]

Depending on the amount of your mortgage you probably won't itemize which isn't a bad thing. Child tax credits for kids under 17 have doubled to $2,000. I wouldn't expect anything earth shattering. The biggest issue will be the withholding on your W-2.

 

[LionsandBear]

Depending on the amount of your mortgage you probably won't itemize which isn't a bad thing. Child tax credits for kids under 17 have doubled to $2,000. I wouldn't expect anything earth shattering. The biggest issue will be the withholding on your W-2.

Married with 0

 

[psualt]

Married with 0

Assuming you were in line last year I doubt a lot changes given the rental income is consistent with prior year. Don't sweat it.

 

[SLUPSU]

Married with 0

State and Local taxes are now limited to 10k, personal exemptions are gone, you'll need to reach the increased std deduction of 24k in order to itemize.

 

[Woodpecker]

Everyone's return is on a post card, right?

 

[PSU-CPA]

I'm getting my 2018 docs together to take to my Tax Preparer and I'm a little nervous about these changes I keep hearing about. I want to know if any of my previous deductions will be reduced or eliminated as a result of the changes. Thanks in advance!

1. Married with 1 Dependent
2. 6 figure + income
3. 2 rental properties and a primary all with mortgages
4. 2 Student Loans
5. Small charitable contributions

You should be paying less tax on your 2018 return. Your tax withholding may be down, though, so you may not get a bigger refund or owe less than 2017.

You generally will only itemize if your mortgage interest and charity combine to exceed $14K. Get $24k standard this year if itemized is less.

Should address the new Section 199A deduction for your rentals with your advisor.

 

[LionsandBear]

Thanks for the insight everyone. It was helpful.

 

[CampbellLION]

I'm getting my 2018 docs together to take to my Tax Preparer and I'm a little nervous about these changes I keep hearing about. I want to know if any of my previous deductions will be reduced or eliminated as a result of the changes. Thanks in advance!

1. Married with 1 Dependent
2. 6 figure + income
3. 2 rental properties and a primary all with mortgages
4. 2 Student Loans
5. Small charitable contributions

You won’t be impacted negatively much if any at all. You probably won’t itemize unless your mortgage interest and property taxes on your primary plus charity is more than $24,000. But lower tax brackets, larger child tax credit and the 199A deduction for your rental income if you are profitable on it will result in you paying much lower taxes this year.

 

[Air Force 1]

I just calculated it and you should get back $1263. You're welcome and that will be $317 for my assistance.

 

[scottpsurules]

In my situation it is a tax increase, as limit on deductions more than offsets rate changes. The limit of state+local to 10k is huge, so will not be itemizing. I would think will be the case for many people and once many people realize the situation after completing returns this year is going to have a huge negative impact on charitable orgs, as that deduction is effectively gone unless you are over the 24k mark. Again would have easily surpassed that mark, without the the state and local limit.....

 

[nits74]

You should be paying less tax on your 2018 return. Your tax withholding may be down, though, so you may not get a bigger refund or owe less than 2017.

You generally will only itemize if your mortgage interest and charity combine to exceed $14K. Get $24k standard this year if itemized is less.

Should address the new Section 199A deduction for your rentals with your advisor.

What about prior year state income taxes and property taxes (if applicable)?

 

[LionsandBear]

I just calculated it and you should get back $1263. You're welcome and that will be $317 for my assistance.

Great! I'd like a Rapid Refund mailed to me ASAP. You can deduct your fee from my refund check before mailing it to me.

 

[PSU-CPA]

What about prior year state income taxes and property taxes (if applicable)?

The total limit on state and local income taxes is $10,000. That includes state and local income taxes and property taxes. Therefore, unless you have a big medical expense, you will only itemize if you have over $14,000 in mortgage interest and charity.

I have done numerous projections over the last year on the new act. Roughly 80% of my clients will pay less tax. The ones that will see an increase are those having a large state and local tax deduction in prior years (and not paying Alternative Minimum Tax-AMT), employed sales people who no longer will be able to deduct their business expenses (again and not paying AMT in the past) and people who received a significant deduction from investment fees (and also having had a benefit in the past meaning not being subject to AMT)

There are myriad other issues such as small C Corporations that saw their rate go from 15 to 21, those with lots of dependents who do not qualify for the child credit and those losing the 80% deduction for giving to the Nittany Lion Club or the Mt. Nittany Club!