LISA P. GONZALEZ, CPA, PLLC Profitability & Growth Advisors Certified Tax Planners
LISA P. GONZALEZ, CPA, PLLCProfitability & Growth AdvisorsCertified Tax Planners   

2018 Tax Law Changes

Here are some of the changes you will want to know about for your 2018 tax return that went into effect on 01/01/18:

 

PERSONAL EXEMPTION:

  • There is no longer a personal exemption amount for you, your spouse or dependents

STANDARD DEDUCTION:

  • The standard deduction is increased to offset the loss of the personal exemption. Beginning in 2018, the standard deduction is as follows:
    • Single Filers:                     $12,000
    • Married Filing Joint:         $24,000
    • Married Filing Separate:  $12,000
    • Head of Household:          $18,000

TAX CREDITS:

  • The child tax credit is increased to $2,000 per qualifying child under age 17.
  • A $500 credit is available for each dependent who is not a qualifying child.

SOCIAL SECURITY WAGE BASE:

  • The Social Security wage base is increased to $128,400 for all wage earners.  This means you will pay 6.2% social security tax on the first $128,400 you earned in 2018.

HEALTH CARE PENALTY:

  • The penalty for not having minimum essential insurance coverage is still in effect for 2018 tax returns.  Beginning January 1, 2019, if you did not have minimum essential insurance coverage, you will not pay the penalty when your 2019 tax return is filed.

MOVING EXPENSES:

  • Moving expenses are no longer tax deductible unless you are a member of the armed forces

ITEMIZED DEDUCTIONS:

  • State, Sales and property taxes combined are limited to $10,000 in 2018 and following.  Any amount over $10,000 will not be tax deductible.
  • All expenses that were reported on Schedule A and subject to the 2% floor are no longer tax deductible.

EMPLOYEE BUSINESS EXPENSES:

  • Employee business expenses are no longer tax deductible.  This includes employee’s use of a personal vehicle, meals, travel, home office, etc.. that are incurred for the employer’s convenience. 

DEPRECIATION: 

  • Section 179 depreciation is increased to $1,000,000 for business assets
  • Bonus Depreciation is increased to 100% for both new and used business assets

MILEAGE RATES:

  • The standard mileage rate for business miles driven is now 54.5 cents per mile
  • Medical & Moving mileage rates are 18 cents per mile
  • Charitable Mileage rate is 14 cents per mile

MEALS & ENTERTAINMENT EXPENSES:

  • The deduction for business entertainment is no longer tax deductible
  • Business Meals remain 50% tax deductible

Contact Us

Contact us with your questions or to schedule an appointment:

 

(281) 335-4974

 

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       Address:

Lisa P. Gonzalez, CPA, PLLC

1322 Space Park Dr

Suite C224

Houston, TX 77058

 

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