{"id":2251,"date":"2018-01-04T10:52:53","date_gmt":"2018-01-04T16:52:53","guid":{"rendered":"http:\/\/cookco.us\/news\/?p=2251"},"modified":"2018-01-04T11:36:00","modified_gmt":"2018-01-04T17:36:00","slug":"2018-tax-law-changes-in-brief","status":"publish","type":"post","link":"https:\/\/cookco.us\/news\/2018-tax-law-changes-in-brief\/","title":{"rendered":"2018 Tax Law Changes in Brief"},"content":{"rendered":"

We are very excited about the opportunities coming in 2018!<\/h2>\n

Everyone will have questions about how the new tax code will affect them and we are busy preparing to address those questions. Many of the changes are going to require technical guidance, which the IRS may not be able to address until after this tax season. In some cases, we will recommend that you schedule a mid-year review appointment to more accurately analyze the impact to your circumstances.<\/p>\n

Individual Tax Changes<\/h3>\n

Child Tax Credit<\/strong><\/span> increased to $2,000 per child ($500 per dependent above 17 years old) – The conference agreement increases the child tax credit to $2,000 per qualifying child under the age of 17 (from $1,000). The maximum amount of this credit that is refundable is $1,400 per qualifying child. There is also a new $500 nonrefundable credit for qualifying dependents other than qualifying children (children in college that are still your dependent). Phase-out at $400,000 AGI for Married filers.<\/p>\n

529 Accounts<\/strong><\/span> Allowed for Private School up to $10,000 per year per child – modifies section 529 plans to allow such plans to distribute up to $10,000 in expenses for tuition per year, per child, to attend a public, private or religious elementary or secondary school. This limitation applies on a per-student basis, rather than a per-account basis. Thus, under the provision, although an individual may be the designated beneficiary of multiple accounts, that individual may receive a maximum of $10,000 in distributions free of tax.<\/p>\n

Standard Deduction<\/span><\/strong> Doubled to $24,000 MFJ and $12,000 Single – Personal exemption of $4,050 per person on tax return is repealed.<\/p>\n

The limitation of itemized deductions for high income earners is repealed.<\/p>\n

Home mortgage interest<\/span><\/strong> limited to interest on the first $750,000 of acquisition debt. – Mortgages acquired before 12\/15\/2017 the limit is still $1 million of acquisition debt.<\/p>\n

Limitation of State tax Deduction<\/strong><\/span> – taxpayer may claim an itemized deduction of up to $10,000 ($5,000 for married taxpayer filing a separate return) for the total of State and local income tax, property taxes or sales tax, not paid or accrued in carrying on a trade or business.\u00a0This does not apply to state and local taxes imposed on a business or schedule E rental property.<\/strong><\/p>\n

Charitable Deduction<\/strong><\/span> – Increases the charitable contribution deduction limit to 60% of Adjusted Gross Income (AGI) from 50%.<\/p>\n

Repeal of Miscellaneous Itemized Deductions<\/span> <\/strong>– suspends all miscellaneous itemized deductions that are subject to the two-percent floor under present law, which included:<\/p>\n