A Guide To The New Rules On Tax Deductions In 2018
Uncle Sam giveth, and Uncle Sam taketh away. The new federal tax code, which went into effect in 2018 and affects the return you'll file in spring 2019, lowers taxes by expanding some deductions, but restricts or outright eliminates others.
Deductions lower your taxable income so you pay less tax. Here's how deducting items from your income were expanded, restricted, or eliminated.
Standard deduction. The standard deduction is the amount you can subtract from your taxable income if you don't itemize - that is, individually deduct items like mortgage interest, charitable donations, and car loans. Nearly doubling the standard deduction to $24,000 for joint filers and $12,000 for singles pushes it up from $12,700 and $6,350, respectively. Fewer than half of taxpayers who itemized their 2017 return are expected to itemize their 2018 return. If you file using the standard deduction, preparing your return will be much simpler. If the standard deduction is less than the total of your itemized deductions, you'll still want to file by itemizing, subject to the rules below.
- Protect Yourself Against Spearphishing
- Even The New York Times Gets Investment Facts Wrong Sometimes
- First-Half Of 2018 Stock Investing Highlights
- U.S. Leading Indicators Growth Rate Slowed In May; Should You Worry?
- Signal To Noise Ratio Of U.S. Economy Is An Anomaly
- Father's Day Financial Tip: Put Your Kids To Work
- Is Economic Growth Sustainable?
- How The New Small Business Tax Break Phases Out
- Fed Shatters Conventional Economic Wisdom
- Four New Signs Point To Economic Strength (2-Minute Read)
- Are You Better Off Than 10 Years Ago?
- CNN, CNBC, And WSJ Mislead Investors
- 10 Years Of Financial History And The Current Outlook In 2-Minutes
- Lost In The Wild Headlines: A U.S. Economic Boom
- Facts About The Recent Volatility And Fears Of A Trade War
- A Guide To The New Rules On Tax Deductions In 2018
- Trade War, Resignations, And Scandal Overshadow Rise In Leading Indicators
- Changes To Estate Tax Explained In This Week's Wealth Update
- Stocks Surge 1.7% Friday As Tariff Fears Subside And New Jobs Surge
- The Economic News That Did Not Make Headlines This Week
- Will Rising Bond Yields Be Bad For Stocks?
- Stock Market Is Unfazed By Russia Indictment, Displaying What Makes America Great
- Stock Prices Corrected 11.8% Before Rallying Sharply Friday
- Why Stocks Plunged Last Week