For people paying their personal taxes, the biggest changes in the tax laws taking effect for next year’s taxes are:
- No Exemptions: The standard deduction has been greatly increased, but almost all of that hassle with exemptions for dependents is gone.
- SALT limit: There is now a cap on state and local tax (SALT) deductions, which could affect people in high tax areas or that own big or expensive property.
- Home Equity Interest change: Most people deduct their mortgage interest but the deduction for new mortgages going forward changes, and you can’t deduct interest not used for your home.
- Unreimbursed Employee Expenses: You can no longer deduct unreimbursed employee expenses, which means you need to talk to your employer about their expectations of what you pay for personally.
- Miscellaneous Expenses: The majority of them are gone now, so be very careful if you relied on them in the past.
This is an extremely quick and generic list, but if you’re affected by one of these, talk to your accountant as soon as possible.
Tags: irs