How Does the New Federal Tax Law Apply to You?

By badmin January 12, 2018

You probably know that Congress recently passed the biggest tax law overhaul in three decades. Here’s a short summary of some of the highlights for families – please consult your tax professional for specifics of how these and other new rules may apply to you and your family.

  • The Standard Deduction – applies to nearly everybody. For married couples filing jointly, the deduction nearly doubled to $24,000. This is great news for everybody and takes the sting out of the loss of some deductions for homeowners.
  • Home equity loan interest deductions are gone.
  • Mortgage interest deductions are intact for most people except those who purchase new homes after 12.15.17 with new mortgages exceeding $750,000.
  • Deduction for property taxes, state/local taxes, and state income taxes now have a combined limit of $10,000.
  • Deductions for moving expenses are gone, other than for active duty military personnel.