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This is episode 13 of “The Winners Ways Podcast, and today is about personal finance. If you can learn about the tax laws and plan properly, you will not get into trouble with the tax man, and you will enjoy financial peace.
On today’s episode, I will be introducing the new changes that come with the “Tax Cuts and Jobs Act of 2017. And what you should expect.
FIVE DEDUCTIONS THAT ARE GOING AWAY
- Personal exemptions: A personal exemption is a sum of money you can deduct for yourself and any dependents from your taxable income.
- Mortgage Interest above $750k: Homeowners previously were able to write off the interest on mortgages up to $1 million. Under the new tax law, however, the cap has been reduced to $750,000 in qualified residence loans.
- Moving expenses: Taxpayers previously could deduct certain moving expenses related to relocating for a new job. This was an “above-the-line” deduction, meaning it could be claimed even if the taxpayer didn’t itemize. “Now the only people who can take this deduction are military service members moving for assignment
- Tax preparation fees: Prior to 2018, fees related to tax preparation could also be combined with other miscellaneous deductions that exceeded 2 percent of your adjusted gross income. This deduction has been suspended through 2025.
- Work-related expenses: In the past, if a taxpayer’s job required certain purchases in order for an employee to perform their job and the employer was unable or unwilling to reimburse the employee, those expenses were tax deductible. For example, employees could deduct mileage driven for work purposes(not commuting), uniforms, tools, union dues and more as long as they are met the IRS rule.
However, beginning in 2018, “employees will not be allowed to deduct out-of-pocket work expenses they pay to do their job, This deduction, along with other miscellaneous deductions, is suspended through 2025.
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