The Tax Cuts and Jobs Act of 2017 affects almost everyone. Whether you file an individual, business, and possibly a non-profit return.
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How does the Tax Cuts and Jobs Act of 2017 affect me?
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I am a W-2 wage earner. How does this tax act affect me differently than the other tax changes?
First you may want to change your W-4 (form to claim tax exemptions).
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I have heard that I may not be able to deduct all my property tax and state income tax withholding. Is that true?
Yes. You now can only deduct a total of $10,000 on your federal tax return for property tax, state income tax withholding, and state estimated tax payments.
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I am an outside salesperson. I receive a W-2 but my company does not reimburse me for such things as client meals, entertainment, and mileage. Will I be affected by the new tax laws?
Yes. You will no longer be able to deduct meals and entertainment and mileage as an unreimbursed employee expense on Schedule A of your tax return.
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I am a mechanic. I receive a W-2, but I must buy my own tools, and I belong to a union. Will I still be able to deduct these items?
No. These expenses are no longer allowed as an itemized deduction to be taken on form Schedule A.
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I file a short form. I only have a W-2 and I have no dependents. Will my taxes go down?
No. These expenses are no longer allowed as itemized deductions to be taken on form Schedule A of your tax return.
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I file a 1040A. I only have a W-2, and I have no dependents. Will my taxes go down?
It is possible. The standard deduction has been increased to $12,000 individuals, $18,000 for heads of household and $24,000 for married couples filing jointly and surviving spouses. Also, an additional standard deduction amount for the elderly or the blind is $1,300. However, the exemption amount for all categories, that was allowed in past years, has been eliminated.
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