New tax laws; what you need to know

Tax season starts today, and your 2018 return may look a little different because of new federal laws. Many of the new tax laws are confusing. We consulted tax specialist Patti Walters from Benedetti and Associates to highlight the biggest changes.

“The biggest thing people are going to see is a change in your itemized deductions, as opposed to your standard deductions. Since they have raised the standard deductions there will be fewer people doing itemizations,” said Walters.

Another notable change is the decrease of the amount allotted for property and income tax deductions.

Patti Walters – tax specialist
“Those are capped at $10,000 now,” said Walters.

If you own a home Walters said your mortgage interest rate can now deduct interest on up to $750,000 of mortgage debt incurred to buy or improve a first or second residence.
Prior to the new tax laws you could deduct interest on up to one million dollars of home acquisition debt. However, if you bought your home before 2018 your in the clear.

“Anything prior to that is grandfathered in,” said Walters.

The new tax laws do bring good news for parents of children under 17.

“They have increased the child tax credit from $1,000 to $2,000 so that is going to be helpful,” said Walters.

Walters also noted that the government shutdown may delay tax refunds.
It may take 21 days for the check to arrive after filing this year due.