The Tax Cuts and Jobs Act, passed in December 2017, made several changes to individual income tax. But what exactly were those changes? And how might they affect you? We took a deep dive, examining line by line to determine the most important changes impacting our clients.

So, who might be at risk of a heavier tax burden?

HOMEOWNERS

Taxpayers whose home mortgage loans are above $750,000 and whose loans originated after Dec. 15, 2017. These taxpayers are subject to the new $750,000 mortgage loan limit.
Taxpayers with acquisition debt of more than $1 million from loans originated on or before Dec. 15, 2017 (previously, interest from an additional $100,000 in acquisition debt was deductible).
All taxpayers that have a HELOC (home equity line of credit) that wasn’t used for acquisition, building, or improvement on their principal home—interest is no longer deductible.

ITEMIZERS

Taxpayers who have combined state & local taxes over $10,000.
Taxpayers who pay foreign property taxes, which is no longer a deduction under the new tax law.
Employees who are no longer permitted to deduct unreimbursed expenses such as office-in-home, mileage, travel, meals and entertainment.

PARENTS AND TAXPAYERS WITH DEPENDENTS

Taxpayers with dependents who are 17 years of age and over will lose the dependent exemption and Child Tax Credit.

Need help understanding how the new tax law will affect you specifically? Give us a call today at 443-605-3167 to setup a free consultation.