All the changes to the tax code and new rules may cause headaches for your tax preparation this year. In the last post, we mentioned that the change in tax laws is the most significant in 30 years. These changes will affect how taxes are prepared for your 2018 return. These wide-range modifications of the tax code affect everything from transportation to health.
Did you know that items such as bicycle commuting reimbursements have changed? You can no longer take reimbursements for monthly use of bicycles, maintenance, storage or purchases. A number of work-related expenses have also been disallowed including home office and job search. Don’t expect reimbursements for moving expenses either.
College savings plans have been expanded but the limit on medical expenses have been reduced. Child tax credits are also different and you will not be able to deduct investment fees or uninsured losses unless they are the result of a federally declared disaster.
The rules on gains on home sales and estate tax exemptions have also been modified. The deduction for state and local taxes has been limited.
These are only some of the changes that will affect tax preparation this year. Your tax preparer may have to figure your taxes with itemized and standard deductions to see which is better for you. The changes in health care and all these new rules may cause headaches during tax preparation.
Take heart. Les Merritt, CPA and CFP, can help. Contact him at (919) 269-8553 and make an appointment to relieve your stress. Les has a long history of helping businesses and families with taxes and investments. This is an important year to get a professional opinion and professional preparation for your personal and business tax returns.