Tax Deductions you probably didn’t know you can claim this year
As we wind down the 2018 year with only the last quarter to go we all demise tax season which is upon us. I bet there are a lot of people who aren’t familiar with the new tax laws that were just set into place recently.
A drastic change the new tax law brings this year is the doubling of the standard deduction. I have created a chart below to illustrate the new changes in the standard deductions respectively to each categorized returns:
| First Header | Prior 2017 | New Tax Law |
|---|---|---|
| Single Returns | $6,350 | $12,000 |
| Head of Household | $9,350 | $18,000 |
| Join Returns | $12,000 | $24,000 |
If you are 65 or older of if you are visually impaired you can receive an additional $1,300 or $1,600 for married couples
I believe what the new tax law is set to do is to help taxpayers avoid itemizing write-offs. What they are trying to do is make the standard deductions look more incisive so that you don’t have to itemize and go through all that hassle. What I will be doing this year is trying both of them out to see which one is the best way to go.
I bet you didn’t know this!
Even if you take the standard deduction you still can take a couple of tax breaks to help lower your tax bill. If you think you fall “above-the-line” think again, you can still claim these deductions there are no income limits. I’ll give you an example if you fall in the 24% tax bracket for every $1k the “above-the-line” deduction can lower your tax bill by $240 by doing this can enable you to claim more tax breaks that have no income limits.
I do not do taxes, but I follow tax laws and update myself on the new tax reform as I personally prepare my self for the tax season. If you are a small business owner and are struggling to keep your personal finances afloat or if you and your family could use a professional financial advisor to help you get your finances back on track feel free to contact me if you live in the greater Austin area!
Rene Gonzales
Senior Representative
c. 512-568-7203
e. [email protected]
www.Primerica.com/ReneGonzales
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