Tax Cuts & Jobs Act

Being married, taxpayer’s have changes that reduce the marriage
penalty, not yet completely eliminated. A $10,000 cap for itemized
deductions applies to both married and singles. Major tax changes for
divorce and separation decrees or arrangements that were entered into or
modified after 2018. Alimony is no longer deductible, and payments to
recipient are no longer taxable. All still applies if agreements were
made prior to 2018. With having children, the tax credit has doubled to
$2,000 for any child under the age of 17. There is now a $500
nonrefundable child tax credit for a qualifying dependent who not a
qualifying child ( child is living and supported by parents, but too old
to be qualifying child). 529 Plans can be used up to $10,000 tax free
withdraw, limitation applies on a per-student basis, for primary and
secondary school (public, private, religious).
If you are changing jobs after 2017 deductions for expenses of resumes,
travel, and other work-related cost is no longer available as an
itemized deduction. Employers can no longer reimburse employees moving
for work on a tax-free basis (other than active military, who relocate
under military orders). TCJA did not change rules for 401(k)s, 403(b)s,
and IRAs, but converting a retirement savings plan to a Roth IRA in
2018, the account value declines from the date of conversion. Tax payers
who support their elderly parents, can still deduct medical cost they
pay out of pocket for their parents. In 2019 the threshold for itemizing
medical cost is set to 10% of AGI.
This new law give taxpayer’s a chance to sit down and evaluate their
personal situations and change their planning strategies for future tax
years to come.