Every taxpayer can choose to lower their taxes by itemizing qualified deductions, or taking the standard deduction set by the IRS. Understanding DeductionsÄeductions can help you lower your tax obligations by lowering the amount of money you are taxed on. If you are expecting either a large refund or a significant tax bill, use another calculator to determine if you should adjust your payroll withholdings. Use this calculator to determine which option is best for you. The ceiling for charitable donations is now 60% of AGI. Mortgage interest will be deductible for mortgages up to $750,000 ($375,000 for married taxpayers filing separately) on properties purchased on or after Decemand $1,000,000 ($500,000 for married taxpayers filing separately) on homes purchased before that date. It also expands the medical expense deduction for two years for filers meeting that threshold from 10% AGI to 7.5% AGI. State, local and property tax deductions for those itemizing will be capped at $10,000. The Tax Cuts and Jobs Act doubled the standard deduction to $13,850 for single filers and $27,700 for married filing jointly, but completely eliminates personal exemptions. How Will the Tax Cuts and Jobs Act of 2017 Impact Me Use our calculator below to help you determine whether to itemize or take the standard deduction. For instance, if you have numerous itemized deductions such as mortgage interest, charitable contributions, etc., it may make sense for you to itemize your deductions instead of using the standard deduction for your tax filing status. With tax season around the corner, its time to make some important decisions. Pros and Cons of Standard or Itemized Deductions On Filing Taxes
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