By: Oxana Saunders
While many of us are preoccupied with the recent volatility of the stock market, it is important to remember that we are in a tax filing season, and April 17 (this year’s deadline) is just a little over nine weeks away. Last year’s Tax Bill has many people wondering what their taxes will look like next year and whether any of these changes will have an impact on their 2017 filings.
The Tax Bill document is quite complex and even many tax professionals are still sorting out all the changes. A notable change for 2017 is medical expenses: If you itemize and have high expenses, the threshold for deduction temporarily goes back to 7.5% from 10%.
529 plans have been expanded as well: starting in 2018, parents may now use $10,000 per year from 529 accounts to pay for K-12 education tuition (see our previous blog on the topic).
Personal exemptions go away in 2018, which could result in higher taxes for married couples filing jointly with children.
Below is a link to a timely Investopedia article that we found very useful in summarizing some of the biggest changes in the tax code, and how they may impact you.
For any questions how tax changes may affect your personal finances, call us at 941.350.7904 for a free consultation.
Oxana Saunders is the Vice President of Path Financial, LLC. She may be reached at 941.894.2571 or firstname.lastname@example.org