the staff of the Ridgewood blog
Ridgewood NJ, Many New Jersey residents are familiar the SALT deduction limitation and its negative effect on over taxes New Jersey Residents .There are many other changes in 2018 tax reform that will affect almost everyone. Always consult a CPA to address your particular tax situation .
According to Wealth management expert George Mentz ,the biggest changes for this years filings include:
- Larger standard deductions for married couples of $24,000.
- Personal exemptions are eliminated and there is no need to file for these.
- A new 37% top tax bracket for high earners. The Obama taxes will remain including the 3.8% Net Investment Income Tax and the 0.9% medical surtax on high earners.
- Estate tax exemption is boosted to $11.2 million for an individual and $22.4 million for a married couple.
- Child tax credit is increased to $2,000 per qualifying child.
- State and local tax deduction or SALT tax deduction limited to $10,000.
- Mortgage interest deductions can only be taken on mortgage debt up to $750,000, down from $1 million. This applies to mortgages taken out after Dec. 15, 2017. Interest on home equity debt can no longer be deducted.
- For charitable deductions, taxpayers can deduct donations of as much as 60% of their income, up from a 50% cap.
- For rules on retirement contributions, deductions, and deduction phase-outs, please consultant a professional or use updated software.