Your 2019 Tax Queries Answered – Part One

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Your 2019 Tax Queries Answered Part One
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• Tax filing can be a confusing and complicated
  debacle at the best of times, but with the
  effects of the new 2019 Republican Tax Law
  beginning to reverberate around the country,
  things just may have gotten out of hand. With
  some tax breaks having been scrapped or capped,
  and others being introduced or expanded upon, it
  can be tough to stay on top of things. So, here
  is the first part of a brief guide that attempts
  to answer some of the most common tax queries
• My tax bill didnt decrease as I had anticipated,
  why?
• Tax bills for folks living in states where taxes
  are higher, such as New York, New Jersey or
  California, may have increased due to state and
  local tax deduction (SALT) having been capped at
  10,000. Income taxes are included in this, as
  are real estate taxes.

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• If you live in New York, for example, and your
  state and city taxes add up to almost 10 of your
  income, then you lose the ability to deduct any
  of your property taxes because your other taxes
  already exceed the 10,000 limit.
• My tax return is showing a minimal refund or
  amount due, why?
• Employers were given guidance by the IRS last
  year as to how tax withholdings from paychecks
  should now work decreases were suggested to
  reflect the tax cut of the 2017 law, and it
  should have given most employees a bigger
  paycheck. However, if you were an employer
  receiving the check, theres a strong likelihood
  that you didnt spot the increase, as it would
  have been reflected in your 2018 paychecks.

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• Are there any changes to deductions and credits?
  If so, do I lose out or can I still claim?
• Here are a few of the most popular deductions and
  credits, along with their 2019 changes
• Dependent exemption Previously, families could
  claim a 4,050 exemption for every child that
  qualifies, but that exemption is no longer valid.
  Now, if you have a child under the age of 17, you
  may qualify for the child tax credit that has
  been raised from 1,000 to 2,000 per child.

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• The credit has begun to phase out at 400,000 in
  income for joint filers and 200,000 for
  individuals, and there is a new credit for other
  dependents (including elderly parents or children
  over 17) of 500.
• Mortgage interest For those who itemize their
  return and have taken out a loan after December
  15th, 2017 the interest paid can be deducted on
  the first 750,000 in mortgage indebtedness
  older loans are grandfathered.
• Unreimbursed employee expenses for business
  expenses not reimbursed by employers for their
  employees, such as classes or seminars, there are
  no further deductions.

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• Tax prep fees if you itemized your return and
  used the services of a tax preparer, or tax
  software, you used to be able to deduct those
  costs, but this is now only possible if youre
  self-employed.
• More information can be found in part two of this
  article, but for more detailed, accurate and up
  to date guidance about current changes to tax
  laws, please seek help from a professional tax
  service.

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• At Heyer Associates, we proactively assist our
  individual and small business clients in meeting
  their goals. Our key area of focus is ensuring
  that our clients remain compliant with federal
  and state tax laws by providing them with high
  quality accounting and tax preparation service
  Coral Gables. If you are looking for tax
  preparation service in Miami, Heyer Associates
  would be a right option.