Standard Deduction

Not Everything Has Changed

NoChange.jpg

I thought it would be helpful to provide a list of items that have not changed with the recent Tax Cuts and Jobs Act of 2017. This list is not exhaustive, but it does include the most common for clients I have served. There was discussion about changes to these items, but nothing changed.

  • Selling your personal residence? You’re still able to exclude a gain of $250,000 (or $500,000 if married) when you sell your home and if you lived in the home two out of the last five years.
  • Age 65 before the close of the tax year? You’ll still qualify for the additional standard deduction.
  • Adopting a child? You can still exclude from income amounts paid by your employer under a qualified adoption assistance program.
  • Paying out-of-pocket qualified educator expenses as a teacher? You may still track and deduct $250 of expenses above-the-line on your tax return.
  • Attending college? The credit options remain the same for qualified higher education expenses. You may take either the Lifetime Learning Credit or the American Opportunity Credit.
  • Paying student loan interest? You’ll still be able to deduct up to $2,500 of interest paid under a qualified student loan.

If you’re in doubt about a tax provision, please remember to research using reliable resources and/or ask your tax preparer to help you understand how the issue applies to you.