Taxes are coming

There is a lot of complexity in the tax system for the average American. But a new tax law was passed back in December of 2017 and last year is the first time that we filed under that law. If you didn't file for some reason or if you've forgotten what changes went into effect, there's one thing you should know. As you start in on working on your taxes this time…” the actual wage earner tax returns should be simpler.” That's Kristine Tigran, a tax expert. Iowa State University. She says the law doubled the standard deduction you can take. So for a married couple, it goes from $12000 up to 24. And it won't allow you though, to itemize deductions unless they exceed that standard deduction of $24000.

“It's going to be difficult for most taxpayers to exceed that amount, so they'll take the standard deduction.” Just using the short form, no scrambling around trying to dig up bills and receipts and all of that to come up with deductions. But if you are still interested in and want to try itemizing and such, the law does keep in place most of the deductions we may have used in the past, including home mortgage interest, state and local taxes, medical expenses, charitable contributions. But Tigransays there is a $10000 cap on the state and local taxes. And as far as medical expenses… “a medical expense deduction can only be taken for those medical expenses that exceed 10 percent of your income.