Now that the 2017 tax season and filings (not those on extensions)are behind us it is time to be concerned about THIS year and what the changes really mean to you and your family.
The first big question/questions this year are “What Can I Still Deduct” and “What Records Do I Need As Back-Up”?
You can still itemize:
If you have high medical expenses
Make large charitable contributions
Have a home mortgage
You are single and either own a home OR live in a high tax state
Retirement Contributions can still help you out at tax time. This is the time of year to check your YTD contributions. Perhaps you can increase them up to or near the limits. Don’t forget the Company contributions from your employer on 401(k) and 403(b) plans.
If you have moved or are planning to move this year this expense is no longer deductible unless you are on orders from the military. SUGGESTION: If you are moving for new employment negotiate with your new employer on this issue.
There are also some changes for every small business whether you are a sole proprietor, partnership or S corporation. There is a NEW BUSINESS 20% income deduction that should help many business start ups in 2018 and Section 179 purchases/limits for exiting businesses has increased to $1 million. Watch your business/entertainment expenses. Meals can still be deducted at 50%, however, entertainment expenses are no longer deductible.