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Tax tricks and treats: Are you ready for the grim tax reaper?

Source: wtop.com - Oct 31, 2018

WASHINGTON — It’s Halloween and the Grim Tax Reaper lurks in the shadows patiently waiting to collect his due! Beware of the 2018 tax rule changes from the Tax Cuts and Jobs Act of 2017 (TCJA) that may bring unexpected tricks to the unprepared. There’s still time before year-end to utilize a few tricks of your own! There are even ways for you to give treats to your favorite charities that avoid the Grim Tax Reaper’s grasp. Read on … if you dare!

The tricky tale of deductions

The new standard deductions for 2018 are $24,000 (married filing joint), $18,000 (head of household) and $12,000 (single). While this could be a treat, many taxpayers will unknowingly fall into these buckets and lose the value of itemized deductions, even though they have itemized in the past. Due to a couple of unfavorable changes under the TCJA, state and local tax deductions (including state income, excise and real estate taxes) are capped at $10,000; and 2 percent itemized deductions, such as unreimbursed employee expenses and tax prep and investment management fees, are no longer deductible.

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Category: General Business