Let an expert do your taxes for you, start to finish with TurboTax Live Full Service. We are ready to help you file and our products will be up to date with the latest tax laws and will guide you through these situations. State and Local Taxesįor tax year 2019 (the taxes you file in 2020), you may be able to deduct sales tax, state and local income tax, and/or property taxes capped at $10,000 ($5,000 for married filing separate) if you itemize deductions. The bill also expands the definition of qualified property to include qualified film, television, and live theatrical productions released after September 27, 2017. The bill also eliminates the requirement that the original use of the qualified property start with the taxpayer- this means it could be a used item! Business PropertyĮxpensing certain property for your business in the first year has been increased, up to 100%, for any property acquired and placed in service after September 27, 2017, but before January 1, 2023. Under the tax reform, your principal place of residence must have been located in a federally declared disaster area between December 31, 2017, and December 31, 2025.Ī personal casualty loss is typically claimed as an itemized deduction but with this new law a taxpayer may claim the loss if they claim the standard deduction with limitations. This tax break is retroactive back to 2016 and was expanded to include losses in any federally declared disaster area, like the Mississippi River Delta Flood Disaster Areas. For example - if you make $50,000 you may now deduct any medical expenses over $3,750 if you itemize your deductions through 2020. Under the new bill the medical deduction stays in place with a lower floor of 7.5%, down from 10% in previous tax years. Beginning January 1, 2021, all taxpayers may deduct only the amount of qualified medical expenses that exceeds 10% of their adjusted gross income. In 20, separate tax extender bills were passed that keeps the 7.5% rate for 20 as well. For the 20 tax years, if you itemize your deductions, you could deduct qualifying medical expenses which exceed 7.5% of your adjusted gross income. Here’s a recap of what you need to know about a few of the provisions that take affect beginning in tax year 2019. The bottom line is you’ll be able to file your tax return with complete confidence. Rest assured, TurboTax has you covered and will be up to date with the latest tax laws. By Chris Simone, Enrolled Agent, Intuit Manager
0 Comments
Leave a Reply. |