When you sit down to do your taxes in the next six months, there are some things you need to know. There'll be a lot of changes to what you can deduct when you file your taxes next year.
Elaine Espinola is one of the 150 million Americans who is gearing up to file a tax return under the new law.
"Sounds like I can't deduct a lot of things that we had been,” Espinola says.
Shes right.
Tax expert Ed Karl says the tax bill that passed last December is the biggest overhaul to the tax code in over three decades.
"Nothing of this magnitude since 1986,” Karl explains.
While some tax credits like standard deductions have increased, some items that were once deductible are now either limited or gone.
Some of the things that may no longer be eligible for a tax break:
- mortgage interest
- alimony
- moving expenses
- personal exemptions
- home office costs
Karl says it's never too late to make some adjustments.
“There's still a couple of months to make some changes; there's still a couple of months to adjust withholding,” Karl says.
If you're stuck wondering how to sort it all out, hiring help is one way.
“I mean, you really, I would think a lot of people are gonna want to work with an accountant this year, because there’s so many changes,” Espinola says.
And ahead of the midterm elections, the tax changes and who makes the laws is another thing to pay attention to.
“I definitely would recommend that's something that people keep in mind when they're voting, for sure,” Espinola says.
