If you’ve already scheduled your annual tax preparation appointment, you might be wondering if there will be differences with your tax filing in 2018. Since the tax law is constantly changing, it’s best to consult your professional consultant about what you can expect. Affordable Tax Service has been providing trustworthy tax preparation services to their Kittanning, PA, clientele for years. Below they’ve outlined three things you need to know about filing your taxes in 2018.
3 Facts About Filing Your Taxes in 2018
1. The Standard Deduction Has Doubled, but the Personal Exemption Is Gone
For single filers, the standard deduction has gone from $6,350 to $12,000. This may seem positive, but the personal exemption of $4,150 is being taken away. Where a single filer could use the previous standard deduction as well as the personal exemption for a total of $10,650 in income exclusions, they are now allowed a simple $12,000 in standard deductions. This was put in place to reduce the number of deductions taken unless they exceed the standard limit.
2. The Tax Brackets Rates Have Changed
While there are still seven tax brackets, the rates have changed significantly. Before, those who were making over $426k fell into a 39.6% tax bracket; they are now at a 37% rate. You can find out where you fall online.
3. The Mortgage Interest Deduction Has Been Lowered
A benefit to many middle-income households throughout the United States, the mortgage interest deduction has been lowered under new tax laws. This could affect what you will be able to deduct if you are a homeowner. Speak with your tax professional about how this will affect your tax filing for 2018.
If you’re about to see your tax preparation consultant, be ready with any questions about tax law changes that might affect you or your business. The professional team at Affordable Tax Service is on hand to assist you with any questions or tax needs you have. Call them today at (724) 548-1350 or visit their website for more information.