There are a lot of changes with the new Tax Cuts and Jobs Act that will affect taxpayers all over the United States.
In this post, we will be highlighting 3 important changes that may affect you and your situation.
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1. The Child Tax Credit INCREASED.
The child tax credit increased by $1000 and will now be worth $2000 per qualifying child. The age cut off remains at 17. The earned income threshold for the refundable credit has been lowered to $2500. Income limitations have been increased to $200,000 for Single and $400,000 for Married Filing Jointly.
2. New $500 Credit for OTHER DEPENDENTS.
The IRS has also issued a new refundable $500 credit for Other Dependents. Think about those dependents who are over the age of 17. Particularly aging parents/grandparents. You may now be eligible to receive a $500 for those dependents!
3. The Standard Deduction increased.
This means that you may not owe as much in taxes as you previously did the year before.
4. Form 2106 Employee Business Deductions have been severely restricted.
The only employees now able to take advantage of these deductions are:
-Armed forces reservists
-Employees with impairment-related work expenses
-Employees who received employer reimbursements, and
-Qualified performing artists.
Any taxpayers who are EMPLOYEES and do not meet those requirements, you will no longer be able to offset your taxable income by common business deductions (and MILEAGE) you may have incurred.