don't shoot the messenger!

off to a bad start for tax season already; the IRS website appears to be bogged down with an overwhelming demand for efile. I have a tax return ready and can't access it yet!

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THURSDAY TAX TIDBITS

How does Trump's new tax law affect you? Under the Trump Administration, there have been many changes made. Read through this brief article on how it may impact you; if you come across any confusion or questions, do not hesitate to reach out! The Act eliminates most itemized deductions . That includes moving expenses, except for members of the military. Those paying alimony can no longer deduct it, while those receiving it can. This change begins in 2019 for divorces signed in 2018. It keeps deductions for charitable contributions, retirement savings, and student loan interest . The Act limits the deduction on mortgage interest to the first $750,000 of the loan. Interest on home equity lines of credit can no longer be deducted. Current mortgage holders aren't affected. Taxpayers can deduct up to $10,000 in state and local taxes . They must choose bet...

Stimulus Check Information

Customers who use tax preparation services such as H&R Block, TurboTax and Jackson Hewitt complained on Twitter and to The Post that they didn’t get their stimulus payments Wednesday. Up to 21 million tax filers could be affected, said consumer law expert Vijay Raghavan, because the IRS does not have these people’s direct deposit information on file if they received an advance on their tax refund from these companies or had the fee for tax preparation taken out of their tax refund. The reason is that tax preparation companies received these people’s tax refunds first, deducted their fees and then distributed the remaining refunds to the customers. Because of that, the IRS had a “temporary bank account” on file that the tax preparer created for the 2019 tax season, Raghavan said.

THURSDAY TAX TIDBITS

Tax Law Changes: Auto Deductions The biggest change in deducting automobiles is an increased deduction for car depreciation for cars used for business. This change may make business owners consider buying cars versus leasing. With Trump’s tax plan, you can take an $18,000 deduction for a new car the first year you own it. Bigger depreciation allowances for passenger vehicles For both new and used passenger vehicles that are acquired and placed in service after 12/31/17 and used over 50% for business, the Tax Cuts and Jobs Act dramatically and permanently increases the auto depreciation allowances. For vehicles placed in service (put to business use) in 2018, the maximum allowances are: * $10,000 for Year 1 or $18,000 if you claim first-year bonus depreciation (see below). * $16,000 for Year 2 * $9,600 for Year 3 * $5,760 for Year 4 and thereafter until the vehicle is fully depreciated If you don’t use the vehicle 100% for business, these allowances are cu...

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