The new tax laws have brought a lot of changes to what businesses can and can’t deduct. The same thing is true for individual filers. As tax preparation services get ready for another filing season, people are bringing their questions about the new policies. Martinson & Carter CPAs wants to help you understand how the recent changes may affect your personal deductions.
Effects of the New Laws on Personal Tax Returns
The new tax laws have created many changes for people filing personal returns for the 2018 tax year. For instance, the standard deduction has increased for all filing statuses: single; married, filing jointly; married, filing separately; and head of household. In other cases, you may not be able to take deductions that you may have claimed in previous years. Other changes include adjustments to tax bracket income limits, life insurance coverage acquisition costs, rate adjustments, and trust taxation.
Changes for Standard & Itemized Deductions
One of the biggest changes in the updated tax regulations involves the standard deduction. Based on the laws that are in effect for the 2018 tax year, married couples filing jointly can file a standard deduction of $24,000 while people filing as single or married filing separately can each claim a $12,000 standard deduction. Standard deductions have also been increased for people who are blind or who are over the age of 65. Under the new laws, far fewer people will be able to itemize their deductions.
Filing Your Taxes for 2018
With all the changes to the tax codes, you may not be sure of what you qualify for. Remember that it’s always better to get help with your taxes rather than risk missing out on some important deductions. Just make sure you choose one of the reputable tax preparation services in your area.
If you live in Rock Hill, SC or surrounding areas, come to Martinson & Carter CPAs for your individual tax preparation needs. Contact our office today to schedule a consultation.