2017 Tax Claims

Holiday Open House
December 5, 2017

2017 Tax Claims

Filing 2017's taxes feels more confusing with the new tax laws being released and new tax enforcement going into effect on January 1st.  Here's what you need to know to be sure you're getting your best (and most accurate) return:  
  1. Personal exemptions
For 2017, you can still claim a $4,050 reduction in taxable income for every qualifying dependent.  
  1. State and local income tax deductions
For 2017, rules are still in effect that allow all state and local income taxes paid in 2017 toward the 2017 tax year... in 2018, there will be a $10,000 cap.  
  1. Property tax deductions
2017 will be the last tax year for which property taxes are deductible in full. Starting this year, property taxes will be subject to the same aggregate $10,000 limit on all state and local taxes.  
  1. Mortgage interest deduction on $1 million homes
Tax reform reduced the amount of deductible interest on home purchases, reducing the maximum loan amount from $1 million to $750,000. That means that borrowers on homes purchased in 2018 worth $1 million or more will see a 25% reduction in what they can itemize.  
  1. Mortgage interest deduction on home equity loans
Tax reform also eliminated the deduction on home equity loan interest. Therefore, 2017 will be the last year that taxpayers can take interest on up to $100,000 in home equity debt.  
  1. Moving expenses
2017 is the last year you'll be allowed to reduce your gross income by the amount you pay for an eligible move.  
  1. Miscellaneous deductions
A host of miscellaneous deductions are slated to go away in 2018, claim them now if you can! They include unreimbursed employee expenses, tax-preparation fees, investment-related legal and accounting fees, and job-search costs.

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