Avoid Tax Surprises

Under The New Tax Reform, Taxpayers Who Itemize Deductions…

Taxpayers who usually itemize deductions are being encouraged by the IRS to check their withholding to avoid tax surprises.  If you itemize your deductions on Schedule A of the Form 1040 you can use the Withholding Calculator (https://apps.irs.gov/app/withholdingcalculator/) to perform a “Paycheck Checkup.”

The law changes went into effect this year (2018) and will affect taxpayers who will file in 2019.  Some of the major changes include:

  • Limiting the deductions for state and local taxes
  • Limiting the deduction for home mortgage interest in certain cases
  • Excluding deductions for employee business expenses, tax preparation, fees and investment expenses, including investment management fees, safe deposit box fees and investment expenses from pass-through entities.
Mary Wong