Friday News / Monday Blues
The tax world is filled with good news and bad news. Start and end your week with the latest on all things taxes!
Monday Blues – July 15, 2019
Moving expenses are non-deductible (except for military)
Who this affects: Taxpayers who incurred moving expenses due to a job relocation.
What this means: Prior to the 2018 tax year, taxpayers who relocated for a new job or transferred to a new location could deduct moving expenses from their overall tax liability. After the TCJA was passed, the moving expense deduction became available only to certain military personnel.
Friday News – July 12, 2019
Child Tax Credit doubled for tax year 2018
Who this affects: Taxpayers with children under 18
What this means: The Child Tax Credit has increased from $1,000 to $2,000 per child.
Monday Blues – July 8, 2019
Personal and dependent exemptions suspended
Who this affects: Taxpayers who claim dependents
What this means: All personal and dependent exemptions have been suspended for tax years 2018-2025. Prior to the TCJA, taxpayers could claim an exemption for themselves, their spouse, and their dependents. Each exemption lowered taxable income by $4,050 under pre-TCJA law.
Friday News – July 5, 2019
New Tax Brackets
Who this affects: The majority of taxpayers
What this means: Wider tax brackets and lower rates equals less tax paid on the same dollar amount.
Monday Blues – July 1, 2019
State and local taxes limited to $10,000 when you itemize
Who this affects: Taxpayers who claim over $10,000 in itemized deductions.
What this means: Whereas previously there was no limit, state and local taxes are now limited to $10,000 when you itemize your deductions.
Friday News – June 28, 2019
Overall limitation on itemized deductions has been suspended through 2025
Who this affects: Taxpayers in certain tax brackets.
What this means: Some taxpayers may be able to deduct more of their total itemized deductions if their deductions were limited in the past because their income was above certain levels.
Monday Blues – June 24, 2019
Miscellaneous itemized deductions (like unreimbursed business expenses) are suspended until 2025
Who this affects: Everyone.
What this means: Previously, taxpayers could deduct the amount of their miscellaneous itemized deductions that exceeded 2% of their adjusted gross income. These expenses are no longer deductible (until 2025).
Friday News – June 21, 2019
Gain exclusion for those who sold their primary residence
Who this affects: Taxpayers who sell their primary residence during the prior tax season.
What this means: If you sold your primary residence in the prior tax season, you may be eligible for $500,000 of gain exclusion ($250,000 for non-joint filers).
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