Other 2018 Tax Law Changes to Make Note of; A Follow Up to Our Post Dated December 27, 2017

Other 2018 Tax Law Changes to Make Note of

Follow up to our post dated December 27, 2017

Individuals:

Mandate

The Affordable Care Act required individuals (except those who qualified for hardship exemptions) to have a certain level of health insurance coverage or face a penalty. The mandate made individuals responsible for obtaining health coverage for themselves and dependents for the whole year. Effective for tax years beginning after December 31, 2018, the new tax bill eliminates the penalty for individuals who do not have adequate health coverage.

Moving Expenses

Moving expenses related to a job change are no longer deductible except for active members of the military.

529 Plan

529 account holders can now use up to $10,000 per year to pay for tuition for elementary or secondary public, private, or religious schools.

Gift Tax

The annual gift exclusion increased from $14,000 to $15,000 per person per donor.

Estate Tax

The lifetime estate tax exemption doubled from $5.6 million to $11.2 million for individuals and from $11.2 million to $22.4 million for married couples.

Businesses/Employer:

Club Dues

The act disallows a deduction for membership dues for any club organized for business, pleasure, recreation, or other social purposes.

Meals & Entertainment:

Featured Posts
Archive
Search By Tags
Follow Us
  • Facebook Basic Square
  • Twitter Basic Square
  • Google+ Basic Square