Tax season can be stressful, and in recent years, there have been several changes that may leave you wondering what that all means for you. The Tax Cuts and Job Acts can have a big impact on what you see during tax season. Mark Dicus & Company is here shed some light on these changes and how these laws will impact your tax return.
Section 199A Deduction
This pertains to sole proprietorships, partnerships and S corporations. If your taxable income is less than 315,000 when married filing jointly or 157,500 for all filings, you can reduce your overall taxable income using this deduction.
Are Employee Meals 100% Deductible?
While employee meals used to be 100% tax deductible, they are now only 50%. An employee meal would be a situation where you treated your employee to lunch or dinner on their birthday or treating your office to lunch one day.
Are Sports Tickets & Entertainment Tax Deductible
When you take a client to a sports event or decide to hit up the golf course with some prospective clients, you are no longer able to deduct this expense. However, the food and beverages purchased at these events may be a deduction.
How Much Home Mortgage Interest Can I Deduct?
For homes that were purchased before December 14, 2017 and are up to $750,000, you can deduct interest payments. You can also deduct up to $100,000 of home equity interest if you have used it to purchase, build or improve your home.
What is Included in Itemized Miscellaneous Deductions?
Itemized miscellaneous deductions that used to qualify and no longer do may include things like
– Union dues
– Work clothes & uniforms
– Job hunt expenses
– Safe deposit box rentals
– Tax prep for personal taxes
– Investment expenses
– & more
State Tax Deduction Change
In the past, you used to be able to deduct your state income taxes paid if the total exceeded your standard deduction. This includes quarterly taxes & taxes withheld from your paycheck, sales tax and property tax. Now there is a cap on that of $10,000. This is a big hit for areas that have high property taxes or high income earners.
How Much Tax Do I Pay on Alimony Received
If you find yourself in the midst of a divorce, there has been a bit of a change to alimony payments taxes. Now, the person that is receiving the alimony can count on that money being tax free, but the person who is paying the alimony will have to pay taxes on it.
Tax Preparation, Filing & More in Salt Lake City, St. George, West Valley City, Provo, Orem, West Jordan & Greater Cedar City, Utah
If you are having a hard time sorting out all of the tax changes and would like some clarification, you can turn to the accountants and tax experts at Mark Dicus & Company to shed some light on the situation. We are here to help make your tax filing easier than it has ever been as we work to maximize your return and keep your money in your pocket. Call us today!