What's New This Year




The new Tax Cuts and Jobs Act has produced many changes. Here is a summary of these changes:

PERSONAL EXEMPTIONS:

All personal exemptions have beed eliminated

STANDARD DEDUCTIONS:

The Standard Deductions have been substantially increased for this year. They are:

FILING STATUS2020
MARRIED FILING JOINT$24,800
MARRIED FILING SEPARATELY$12,400
HEAD OF HOUSEHOLD$18,650
SINGLE$12,400
65 AND OLDER / BLIND [MARRIED FILING JOINT]$ 1,300
65 AND OLDER / BLIND [SINGLE]$ 1,650

ITEMIZED DEDUCTIONS:

MEDICAL:

Medical Deductions start after 7.5% of AGI is reached

STATE AND LOCAL TAXES:

All State and Local taxes, including State and Local taxes withheld from payroll, pensions, etc and Real Estate taxes are capped at $10,000.00

MORTGAGE INTEREST:

Mortgage Interest incurred after December 15, 2017 is capped at the acquisition indebtedness of $750,000

Home Equity Debt is suspended unless all or part of the Home Equity Loan was used for the purpose of improvement to the home and is secured by the home

CHARITABLE CONTRIBUTIONS:

The amount of Cash Contributions deductibility has been increased to 100% of AGI

A $300 deduction for Charitable Contributions if you are not able to itemize

CASUALTY AND THEFT LOSSES:

These losses are only limited to losses incurred in a Federally Declared Disaster Area.

Losses due to personal theft are no longer deductible


THERE ARE A HOST OF OTHER CHANGES WHICH MAY TAXPAYERS ON AN INDIVIDUAL BASIS. PLEASE CHECK WITH YOUR TAX PROFESSIONAL TO SEE IN AND HOW THESE CHANGES MAY AFFECT YOUR INDIVIDUAL RETURN.