The tax process can be stressful, especially with the complexities of ever-changing tax laws. Many deductions and credits that were once common are no longer available due to tax reforms. This means you may need to rethink your tax strategy to minimize your tax bill. Understanding these changes is essential to prevent errors on your tax return and to discover new opportunities for tax savings. Luckily, our professional tax accounting team at SCL is here to provide you with a list of these specific deductions and credits that have been eliminated. Our Bronx tax services not only help you educate yourself but also get you covered with optimizing your taxes.
Personal exemptions used to be a straightforward way to reduce your taxable income by simply claiming yourself and each member of your household. However, the Tax Cuts and Jobs Act (TCJA) of 2017 eliminated personal exemptions starting in 2018. This change was part of a larger overhaul that increased the standard deduction, simplifying the tax process for many but removing a familiar tool for reducing taxable income.
Moving for a new job once came with the perk of deductible moving expenses, which could offset the costs of relocating. The TCJA changed this benefit, restricting the deduction solely to active-duty military members moving due to a military order. For everyone else, moving expenses are no longer deductible, necessitating careful financial planning to manage relocation costs without relying on a tax break.
Alimony payments used to provide a tax advantage by being deductible for the payer and taxable for the recipient. This arrangement changed significantly with the TCJA for divorces finalized after December 2018. Now, alimony payments are neither deductible by the payer nor taxable to the recipient, which requires a new approach to financial planning in divorce settlements to accommodate these changes.
Unreimbursed employee expenses were a lifeline for those who spent their own money on work-related costs such as travel, uniforms, or professional development. Prior to 2018, these expenses could be itemized and deducted. The TCJA, however, eliminated this deduction for most employees. Now, only certain groups like reservists, performing artists, or fee-based government officials can still claim these expenses, making it crucial to seek employer reimbursement whenever possible.
Now that you know which tax deductions and credits you can’t claim anymore, it’s important to focus on how to manage your taxes effectively. Our tax professionals at SCL Tax Services are going to share some simple and practical tips and strategies to help you adjust your tax plan and find new ways to save money, even without some of these tax deductions and credits.
Although some deductions have been eliminated, many valuable ones remain. Ensure you’re making the most of those still available. For example, you can still claim the mortgage interest deduction, student loan interest deduction, and deductions for charitable contributions. You can also take advantage of remaining tax credits. Staying informed about these remaining tax deductions and credits can significantly reduce your tax burden.
Don’t forget about any state-specific credits and deductions. Certain states provide special tax advantages that can lower your overall tax liability. For example, some states offer credits for solar energy installations, deductions for certain medical expenses. So it’s crucial to examine the tax advantages that your state offers and include them in your entire tax plan.
Organize your capital losses and gains by managing your investments wisely. Sell investments that have increased in value during a year when your income is lower to pay less in capital gains taxes. At the same time, sell investments that have lost value to offset the gains from other investments. This method, called tax-loss harvesting, can help reduce your taxable income.
Complex tax rules that are constantly changing can make it tough to stay updated. Staying on top of these changes is crucial for managing your finances effectively, but it can be overwhelming on your own. That’s where SCL Tax Services steps in. Our team of experienced tax professionals and skilled tax accountants is here to guide you through the tax landscape with ease. Whether you need expert tax preparation as an individual or assistance with business taxes and bookkeeping services, we provide comprehensive tax services tailored to your needs. As your trusted partner, we offer personalized advice and support to help you understand your tax obligations and optimize your tax returns. Let us manage the complexities while you focus on running your business or enjoying your personal finances. Choose SCL Tax Services for reliable and expert tax accounting in and near the Bronx. We got your taxes covered so you can focus on other important stuff with peace of mind.
Are moving expenses still deductible?
Moving expenses are generally not deductible on federal tax returns. Unless you’re an active-duty military member relocating due to a military order, you cannot claim deductions for costs associated with your move, such as transportation, packing, or storage.
Can I deduct alimony payments?
Alimony payments are no longer tax-deductible for the payer or taxable income for the recipient for divorces finalized after December 2018. This change in tax law significantly impacts how alimony is treated compared to previous years. If your divorce was finalized before this date, different rules may apply so it’s important to consult a tax accountant.
What are some remaining tax deductions and credits I can claim?
You may still be able to claim deductions for mortgage interest, student loan interest, and charitable contributions. There are also various tax credits available, so it’s important to consult a tax professional and review your options to make the best decision.
How can I minimize my tax bill without these deductions?
Focus on maximizing remaining deductions and credits, exploring state-specific tax benefits, planning for capital gains and losses, and seeking professional tax advice from a reliable tax service company.
We are here to relieve you of the tax pressure by offering a wide range of Tax Services In & Near Bronx, NY. If you need expert advice or need us to complete your taxes, we will provide it for you. We know you work hard, so we work hard to serve your needs.
Your time is valuable, which is why we are here for you.