Tax Changes You Should Know For 2005 Returns

Tax Changes you​ Should Know for 2018 Returns
Every year,​ you​ have to​ file tax returns and every year there are changes to​ the​ tax code .​
Here are some key changes for 2018 to​ keep in​ mind when you​ prepare returns .​
Tax Changes you​ Should Know for 2018 Returns
2018 was a​ fairly quite year when it​ came to​ changes to​ the​ tax code .​
Most changes were in​ the​ form of​ tweaks,​ instead of​ major overhauls .​
This break seems to​ have given the​ IRS a​ change to​ clean up some of​ its procedures as​ it​ has started simplifying forms .​
Nonetheless,​ here are changes to​ keep in​ mind when preparing your tax returns.
1 .​
Donations of​ automobiles to​ charities are being treated differently from 2018 forward .​
If you​ donated a​ car to​ charity in​ 2018,​ you​ may be in​ for a​ minor shock .​
Instead of​ claiming fair market value,​ the​ deduction for the​ donation is​ now limited to​ the​ actual gross payment received by the​ charity when auctioning off the​ automobile .​
The charity you​ donated to​ should have sent you​ correspondence indicating the​ amount in​ question .​
If they did not,​ contact them to​ get one so you​ know what you​ can deduct.
2 .​
The business mileage allowance is​ a​ two-tier system for the​ 2018 tax year .​
For business miles incurred during the​ first eight months of​ the​ year,​ the​ deduction is​ 40.5 cents a​ mile .​
For the​ last four months of​ 2018,​ the​ deduction is​ a​ whopping 48.5 cents a​ mile .​
This odd use of​ two calculations is​ due to​ the​ explosion in​ gass prices in​ 2018 .​
3 .​
In a​ positive development,​ the​ exemption amount on​ your tax returns has gone up .​
For each exemption,​ you​ can now deduct a​ hefty $3,​200 per exemption .​
Keep in​ mind,​ however,​ that exemptions are graduated per your adjusted gross earnings .​
The more you​ make,​ the​ less of​ an​ exemption you​ can claim .​
The specific graduated percentages depend on​ your filing status,​ so you’ll have to​ take a​ look at​ the​ tax tables to​ ascertain the​ impact on​ your tax filings.
4 .​
The standard deduction that can be claimed by those who do not itemize has gone up .​
Again,​ it​ depends on​ your filing status,​ so make sure you​ take a​ close look at​ the​ numbers on​ whatever version of​ form 1040 you​ are using this year .​

5 .​
The earned income tax credit assists low income taxpayers by cutting the​ amount of​ taxes that have to​ be paid .​
To claim the​ tax credit,​ you​ have to​ be earning under a​ certain amount .​
This amount has increased for the​ 2018 tax year .​
You’ll have to​ look at​ your tax form to​ get the​ specific amount as​ it​ varies pursuant to​ your filing status and the​ number of​ children you​ are claiming .​

6 .​
If you​ lived in​ any area devastated by Hurricane Katrina,​ the​ IRS is​ giving out major concessions to​ help alleviate any tax problems .​
Go to​ the​ IRS web site to​ learn more .​
As you​ can see,​ the​ tax changes for 2018 aren’t particularly significant .​
Still,​ you​ need to​ know them when you​ file.
Tax Changes You Should Know For 2005 Returns Tax Changes You Should Know For 2005 Returns Reviewed by Henda Yesti on June 29, 2018 Rating: 5

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