20 Second Advisor: A few things to know for your 2018 tax return

As of January 28th, the IRS started accepting returns for the 2018 tax year.  Here’s a list of some of the changes you can expect as you file this year:

  • A new 1040 form was released last year.  The new version is about the size of a large postcard.  But for those of you that file electronically, this won’t really matter for you.
  • Up until now, there were 3 versions: the 1040, 1040A, and 1040Z.  Now there is only one version of the 1040.  There will be just one standard form 1040 with six new add-on schedules used for certain deductions.
  • No more personal exemptions.  This means that you can no longer claim and deduct money for every person in your household.  This used to be a deduction of $4,050 per person up until 2017.
  • Standard deduction increase.– to make up for the loss of personal exemptions, the standard deduction went up.  $12,000 for single filers, $24,000 for married filing joint, and $18,000 for heads of household.
  • IRS tweaked the tax brackets and lowered income tax rates.
  • SALT Cap of $10,000 deduction for state and local property, income, and sales taxes on Schedule A (itemized deductions).
  • Deadline is April 15th.  If you file an extension, remember that the extension only applies to your actual filing.  It does not delay taxes owed.  Any tax liability is still due by the April 15 deadline.

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