An election year and new President ushered in tax reform as one of his changes from the previous administration. After approximately a year in office, many of the changes go into effect immediately and will impact your tax returns for the upcoming year. While many are excited about the increased take home money from their paychecks with regards to the new taxes, some will be surprised to find out the lingering effects of a recently approved tax reform bill.

While some are familiar with the changes, many will be surprising according to their most recent returns. Some will be ready for the changes and others will be impacted when they decide to file their returns. For the best results, relying on the professionalism of an expert to navigate the ever changing tax landscape is one of the best pieces of advice available.

For example, significant changes have been made for mortgage interest, charitable contributions, and medical expenses. These 2018 tax changes include the following for an upcoming filing season and need to be noted for appropriate returns in the coming year.

Mortgage Interest

New deductions only apply to mortgages applied after December 15, 2017 as any other pre-existing mortgage will be grandfathered into the tax deduction principle. For new mortgages, the interest on home equity debt is no longer subject to deduction and the deduction can only be taken on those including $750,000 which is down from the prior years from $1 million.

Charitable Contributions

These donations have been raised from a cap of 50-percent of an individual or household income to 60-percent. This increase means individuals who donate more can deduct a larger portion, however there is also a significant change from prior years. Those taxpayers making charitable contributions to universities or colleges in exchange for athletic tickets are no longer allowed the monetary deduction.

Medical Expenses

Typically a beneficial deduction for those involved with making medical expense payments, the rate has decreased for the upcoming tax year. For 2017, the deduction has been reduced from 10-percent to seven and one-half percent of the adjusted gross income for the taxpayer. The reduction allows for individual’s to deduct a larger amount of their unreimbursed medical expenses.

The experts at Bloch, Rothman, and Associates will be happy to help analyze your individual tax implications and filing status, assist you in determining which deduction would be right in your situation and answer any questions regarding individual or business income taxes. We can also assist with a variety of bookkeeping and other payroll options. It is recommended for those who are selected for an audit, that they enlist the services of a professional tax service before they begin engaging with the IRS auditor, especially before they submit any information.

In addition, a fully detailed review of your tax situation can be completed alongside resolution to your issues and estate compilations. We understand that time is of the upmost importance to our clients, and all services provided will be completed, depending on your restriction and possible tax deadlines, with the utmost attention to time spent. Whether you need a simple explanation on a random tax form, are in need of representation, or would like help in a variety of other services our tax experts are ready and willing to assist. Call 303-321-7160 or contact us for your initial free no obligation consultation.