As of yesterday, we have filed 950 tax returns and I can count the number of clients that fared worse than the previous year on both hands.<\/p>\n\n\n\n
Those 10 fingers represent people who fall into 3 categories.<\/p>Gregory J. Cook, EA, CPA
Accredited Tax Advisor<\/cite><\/blockquote>\n\n\n\nThose who did not benefit from the increased Standard Deduction and loss of Personal Exemptions<\/p>\n\n\n\n
Single taxpayers who routinely had Itemized Deductions of $12,000 to $16,000. In 2017 they had the benefit of those deductions plus their Personal Exemption of $4,050. Under the new law, they gained nothing from the Standard Deduction being increased from $6,350 to $12,000, and lost the $4,050 Personal Exemption deduction. Most however, realized benefits in other areas of the code, like the reduction in Tax Brackets.<\/p>\n\n\n\n
The same holds true for married couples who routinely had $24,000 to $36,000 of Itemized Deductions. They gained nothing from the Standard Deduction increase from $12,700 to $24,000. Yet they lost their Personal Exemption deductions of $8,100. Again, most however, realized benefits in other areas of the code, like the reduction in Tax Brackets.<\/p>\n\n\n\n
Those people that routinely deducted Employee Business Expenses<\/p>\n\n\n\n
In my opinion this was the most unfair part of the new tax code. Supporters will argue that the higher Standard Deduction will off-set the loss of the deductions. To that I say, sometimes, but not always.<\/p>\n\n\n\n
Those that routinely deducted more than $10,000 in State and Local Taxes (SALT)<\/p>\n\n\n\n
If you fall into this category, you are most likely a high income person and should realize benefits in other areas of the code, like the reduction in Tax Brackets.<\/p>\n\n\n\n
<\/p>\n","protected":false},"excerpt":{"rendered":"
As of yesterday, we have filed 950 tax returns and I can count the number of clients that fared worse than the previous year on both hands. Those 10 fingers represent people who fall into 3 categories. Gregory J. Cook, EA, CPAAccredited Tax Advisor Those who did not benefit from the increased Standard Deduction and […]<\/p>\n","protected":false},"author":1,"featured_media":2171,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"apple_news_api_created_at":"2019-03-08T15:17:31Z","apple_news_api_id":"115b2e9e-1dc8-42a5-9137-4c90b0b4e2d4","apple_news_api_modified_at":"2019-03-08T15:17:34Z","apple_news_api_revision":"AAAAAAAAAAD\/\/\/\/\/\/\/\/\/\/w==","apple_news_api_share_url":"https:\/\/apple.news\/AEVsunh3IQqWRN0yQsLTi1A","apple_news_cover_media_provider":"image","apple_news_coverimage":0,"apple_news_coverimage_caption":"","apple_news_cover_video_id":0,"apple_news_cover_video_url":"","apple_news_cover_embedwebvideo_url":"","apple_news_is_hidden":"","apple_news_is_paid":"","apple_news_is_preview":"","apple_news_is_sponsored":"","apple_news_maturity_rating":"","apple_news_metadata":"\"\"","apple_news_pullquote":"","apple_news_pullquote_position":"middle","apple_news_slug":"","apple_news_sections":["https:\/\/news-api.apple.com\/sections\/74d71b26-dfe2-3cf6-9b79-55911f8259f1"],"apple_news_suppress_video_url":false,"apple_news_use_image_component":false,"footnotes":""},"categories":[82],"tags":[],"class_list":["post-2921","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-tax"],"apple_news_notices":[],"_links":{"self":[{"href":"https:\/\/cookco.us\/news\/wp-json\/wp\/v2\/posts\/2921","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cookco.us\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cookco.us\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cookco.us\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/cookco.us\/news\/wp-json\/wp\/v2\/comments?post=2921"}],"version-history":[{"count":0,"href":"https:\/\/cookco.us\/news\/wp-json\/wp\/v2\/posts\/2921\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cookco.us\/news\/wp-json\/wp\/v2\/media\/2171"}],"wp:attachment":[{"href":"https:\/\/cookco.us\/news\/wp-json\/wp\/v2\/media?parent=2921"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cookco.us\/news\/wp-json\/wp\/v2\/categories?post=2921"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cookco.us\/news\/wp-json\/wp\/v2\/tags?post=2921"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}