Kamala Harris unveils new bold plan to give US teachers a 23% salary increase

CHARITABLE DEDUCTIONS

This higher standard deduction makes it difficult to set up sufficient charitable deductions to deserve to be detailed. But if you make large contributions, the deduction threshold has increased from 50% of adjusted gross income to 60%. Although it is too late to make charitable donations for 2018, Kibler suggests looking for receipts for donations made throughout the year, especially money or property. Donations to non-profit organizations, religious organizations and government organizations (such as a school or public library) are deductible. "If you have deposited a bag of clothing at a local charity, or if you gave them $ 5 at your grocery store, make sure you follow these contributions to get the greatest tax benefit possible," he said. said Kibler.

STANDARD DEDUCTION

The passing of the Employment and Employment Tax Reduction Act in 2017 almost doubled the standard deduction in 2018 from $ 9,350 to $ 18,000. dollars for those who meet the cleaning requirements. But he also eliminated a series of useful credits and deductions, including the personal exemption, which amounted to $ 4,050 in 2017.

TAX CREDIT FOR AMERICAN OPPORTUNITIES

While tuition and tuition deductions are exhausted, the US Opportunity Tax Credit remains an option for eligible students – not for graduate students or long-term undergraduate students; it is available only during the first four years of college – with at least a part-time status in an accredited school. It covers the entire first $ 2,000 of expenditures and 25% of the next $ 2,000 (for a total of $ 2,500). Schools will send students a 1098-T indicating the amount paid last year in tuition and tuition, but even expenses such as books, supplies, and equipment such as computers can to be compensated. If the 1098-T does not exceed the authorized credit, keep these receipts for the supplies.

LIFE LEARNING CREDIT

This is the tax credit for older student. Anyone taking courses in an eligible educational institution to acquire or improve their professional skills is eligible even students who take a single course well after four years of undergraduate study. There are limits: students are only credited for 20% of the $ 10,000 spend ($ 2,000 is the maximum), although this can be applied to tuition fees, fees, books, supplies and to the equipment. Individuals with an adjustable gross income between $ 56,000 and $ 66,000 (or between $ 112,000 and less than $ 132,000 for the joint marital deposit) will receive a reduced amount. If these thresholds are exceeded, you can not claim the credit.

DEDUCTION OF MORTGAGE INTEREST

If you bought a house and the mortgage was in place before December 15, 2017, you can still deduct interest on mortgage debt of up to $ 1 million. If you logged in on this date or later, your threshold will be $ 750,000.

PREMIUM TAX CREDIT

If you or your family have health insurance from a government-run marketplace created under the Affordable Care Act, you may qualify for this credit. Income is limited to $ 48,560 for individuals and $ 100,400 for a family of four, but the credit is generally the cost of the second cash plan. Taxpayers can obtain this credit in advance to offset their monthly bills, but they claim too much and must be repaid on deposit. Those who receive too little can claim the rest when submitting the returns.

CREDIT OF DEPENDENT CARE

If a child does not qualify for the child tax credit because he is over 17, he may still qualify for a $ 500 credit under the new tax laws. The credit also applies to elderly or disabled dependents.

TAX CREDIT FOR CHILDREN

Those who took advantage of the 2017 child tax credit could claim a $ 1,000 credit on their tax return for each eligible child under age 17. In 2018, this amount doubles to $ 2,000 per eligible child. The credit was also non-refundable in previous years, but can now be reimbursed up to 15% of earned income greater than $ 2,500, or up to $ 1,400. To be eligible, children must be 16 years old or younger by the last day of 2018, be related to you, declared dependent, be US citizens or established residents, have lived with you for half the year of the year. Taxation (although absences from school, vacations, military service and medical care are exempted) and should not provide more than half of one's own resources. The credit is being phased out for married taxpayers who jointly deposit $ 400,000 (or $ 200,000 for all other taxpayers).

INCOME TAX CREDIT

The earned income tax credit is for low- and moderate-income taxpayers with "earned income," such as wages, salaries or wages for self-employment (but not social security, income from unemployment or investment). The limits are strict, ranging from $ 15,270 for a single person without children to $ 54,884 for a married couple with three or more children. The value of the credit ranges from $ 519 to $ 6,431 depending on the filing status and the number of dependents, but imposes on the beneficiaries investment income of less than $ 3,500 for the year.

DEDUCTION IRA

Whether through an employer or a private plan, a traditional individual retirement arrangement financed with pre-tax money – unlike an after-tax Roth IRA – is deductible up to a certain limit. Even if an account is opened and funded in 2019, all contributions made before the filing deadline can be credited the previous year. For 2018, the maximum contribution is $ 5,500 (or $ 6,500 for those 50 and over). There are also deduction limits based on the taxpayer's income and access to an employer sponsored retirement account.

DEDUCTION OF STUDENT LOAN INTEREST

Students can still deduct up to $ 2,500 for interest paid on their student loans, but less if adjusted gross income is greater than $ 65,000 ($ 135,000 for joint returns) and nothing if $ 80,000 or more ($ 165,000 or more for joint statements).

CREDIT FOR SENIORS OR DISABLED PEOPLE

Taxpayers age 65 and over – or younger but retired or on permanent or total disability – may be eligible for a credit. Taxable income must be less than 17,500 USD (or 20,000 USD when married and jointly produced) and non-taxable social security, retirement or disability benefits must be less than 5,000 USD . If both partners qualify and file jointly, the income limits are $ 25,000 for taxable income and $ 7,500 for non-taxable benefits. The credit itself is between $ 3,750 and $ 7,000.

SAVINGS CREDIT

That's not much, but the savings credit gives back to low- and moderate-income people who contribute to a qualified retirement account. Taxpayers can earn a credit of 10%, 20% or 50% of the first $ 2,000 paid, based on income and family size. To obtain the minimum of 10%, the maximum income allowed is 31 500 USD for single filers, 47 250 USD for the head of household and 63 000 USD for joint filers. In addition, starting this year and starting in 2018, if you are the designated beneficiary, you may be eligible for a contribution credit to your Living a Better Life Experience account for people with disabilities.

SEP-IRA CONTRIBUTIONS

A long-time friend of small business owners and freelancers, the simplified IRA Employee Pension Plan offers higher contribution limits than those of a traditional IRA. As their own employer, business owners and freelancers can contribute up to 25% of their annual income or $ 55,000, whichever is less. As in the case of a traditional IRA, contributions paid before the production deadline (without extension) can be applied to the previous year.

CREDIT OF MORTGAGE INTEREST

Taxpayers who obtain a qualified mortgage credit certificate of up to $ 7,500 from a local government or state may eventually apply for the mortgage interest credit. The house must be the primary residence of the taxpayer and the interest payments can not go to a member of the taxpayer's family. The credit is worth up to $ 2,000 and unused portions can be carried forward to the next year.

DEDUCTION FOR MEDICAL EXPENSES

You can get a bigger deduction for medical expenses in 2018 by doing absolutely nothing. Until recently, taxpayers aged 65 and over could deduct total medical expenses exceeding 7.5% of their adjusted gross income. Even married couples with a person aged 65 or older were eligible, but younger single taxpayers could only deduct medical expenses exceeding 10% of their AGI. For 2017, this threshold was to rise to 10% of the AGI for all, including those over 65; the recent tax reform set the threshold for all at 7.5% of gross income and made it retroactive to 2017. It will remain in place for 2018, but will return to 10% of the AGI in 2019.

SOLO CONTRIBUTIONS 401 (K)

Unfortunately, taxpayers can not install one before the tax deadline and save money. The participant to a 401 (k) participant, or the solo or freelance worker 401 (k), requires you to apply for a Federal Employer Identification Number and set up the account by December 31st at the latest. But once a single 401 (k) is established, taxpayers can make contributions up to the filing date of the return in April (or mid-October, with an extension). The total amount of contributions may not exceed $ 55,000, but this still represents nearly four times the maximum contribution of an employee of a standard amount of $ 18,500 (401).

BONUS DEPRECIATION

Last year, if you bought office furniture, computer servers, cranes, loaders, livestock, trucks or taxis for a business, you may be able to depreciate more than you thought. Even if you built oil derricks, warehouses, offices or utility facilities after September 26, 2017, the additional depreciation you could claim in the first year of ownership of these assets increased from 50 % to a 100% working day. from September 27th. Recent tax changes have also extended the amortization bonus of new items purchased or built for both new and used assets. This "expenditure" applies to productions (qualified films, television and / or on stage) and even to certain fruits or nuts. The law also increased the maximum deduction from 500,000 USD to 1 million USD, the phase-out threshold rising from 2 million USD to 2.5 million USD.

Car costs

Self-employed workers can deduct 54.5 cents per mile for business purposes the year before; the rate goes up to 58 cents in 2019. That said, detailed mileage logs are needed. Note the kilometers traveled (reading the odometer at the beginning and end of the trip's help), the date, the commercial purpose of the trip and the destination must be adequate. Taxpayers can also benefit from a deduction of 18 cents per mile for qualifying miles traveled for medical purposes in 2018, up from 17 cents in 2017 (and 20 cents in 2019). The standard mileage rate for charitable activities is unchanged at 14 cents. Moving expenses, however, are no longer eligible for a deduction.

OFFICE DEDUCTION AT HOME

This one is delicate, because it is not enough to work on the sofa or at the table of the kitchen. A home office should be a dedicated space to work and meet clients. In addition, public services related to the office, such as telephone, Internet, and even heating and electricity, must be analyzed separately. You can try to determine what part of the expenses, taxes, insurance and depreciation of a home is devoted to a home office; a simplified version multiplies the square footage of the room by $ 5 (if the total size is 300 square feet or less). That said, you can only get this deduction if you are a self-employed worker: he disappeared for employees in 2018.

TAX DEDUCTION BY STATE AND LOCAL

Under the tax changes, the deductions for national and local taxes (property tax and sales tax or income tax) are capped at $ 10,000 from 2018 to 2025. If the total of your national and local taxes and your property taxes usually exceed $ 10,000, there is no way to increase. the deduction. The new tax law prohibited early payment of 2018 national and local taxes that were not imposed in 2017.

CREDIT OF ADOPTION

You may be able to claim a tax credit of up to $ 13,810 for eligible expenses paid when adopting a child in 2018. These expenses include adoption expenses, court attorney's fees, travel expenses (including meal and lodging expenses) and fees for a foreign child. These credits apply to adoptions of anyone under the age of 18 or physically or mentally unable to support themselves. If your adjusted adjusted gross income is greater than $ 207,140, ​​the credit is reduced. those with MAGI of $ 247,140 or more can not take credit.

FOREIGN TAX CREDIT

If you paid or accumulated income tax in a foreign country or a US possession in 2018, you can use it as a credit corresponding to US income tax. If you already exclude income earned abroad, overseas housing costs, foreign possessions or income from Puerto Rico exempt from US tax, you are not eligible. In addition, your foreign tax credit can not exceed your US tax liability multiplied by a fraction of taxable income outside the United States and total taxable sources.

EXCLUSION OF HOME SALES

Most people selling a home know that if they sold at a profit, they can exclude up to $ 250,000 if they are single or $ 500,000 if they get married together. Of course, you had to live in this house for two of the last five years (military, foreign service and intelligence personnel are exempt). What most homeowners do not realize, is that the gain is not just about the selling price of the house, but the improvements made, the sales commissions of realtors, the closing costs, the fees registration and surveying fees. Kibler suggests keeping clear records of all this in case of auditing and keeping a large portion of the gain tax – free.

EXCLUSION OF EARNED INCOME OUTSIDE

If you live in a foreign country for at least 330 full days a year, you can collect up to $ 104,100 from your wages, salaries, professional fees and other amounts you receive as an employee excluded from federal taxable income. You can also exclude amounts that your employer pays for rent, furniture rentals, parking, or other items.

HSA CONTRIBUTION LIMITS

The IRS will allow taxpayers to make tax-free contributions and withdrawals from a health savings account as long as they are used to cover medical expenses. High deductible health plans – with premiums between $ 1,350 and $ 6,650 for singles and between $ 2,700 and $ 13,300 for families – allow taxpayers to contribute up to $ 3,450 for single filers or $ 6,900 for HSAs families without any tax implications.

CREDIT OF ENERGY TAX WITHOUT ENTERPRISE

Non-business property real estate credit covers materials that meet Ministry of Energy efficiency standards. This includes home insulation, exterior doors, exterior windows and skylights, some roofing materials, electric heat pumps, various water heaters, central air conditioning, biomass stoves, generator generators, Hot air, boilers and advanced circulation fans. You can claim 10% minor enhancements or 100% major enhancements, but you only get a maximum credit of $ 500 for all years of enhancements combined. It also sets credit limits for windows ($ 200), boilers ($ 150), fans ($ 50) and heavy work ($ 300).

RESIDENTIAL RESIDENTIAL ENERGY TAX CREDIT

If you are considering using solar energy, installing a small wind turbine, exploring geothermal heat, or experimenting with fuel cells, you get a tax incentive. You can get a 30% discount on all of the above, but act fast. If you do not install it by the end of 2019, the discount will be reduced each year until 2022.

CAUSES, LOSS OF DISASTER AND FLIGHT

In previous years, a taxpayer could claim a deduction for any incident at home. But from 2018, the damage must have been caused during a disaster declared by the federal government so that a taxpayer could benefit from the same deduction. This deduction can be fully reinstated in 2025, but for now it is limited to the affected areas.

TEACHING RELATED TO WORK

Self-employed workers, including those with independent incomes, may charge training fees for workshops, webinars, books, or other materials to maintain or improve their skills. Although educational expenses to meet the minimum requirements of a trade or business – or related to entering a new sector of activity – are not eligible refresher courses, courses on current developments and university or professional courses would be. The deduction is the amount by which eligible work-related expenses represent more than 2% of adjusted gross income.