Taxes Are Almost Due! Are You Prepared?

There are only 28 days until Tax Day! If you’re like most, you’re probably getting tired of all the tax commercials on TV. Doing your taxes is one of those activities that you either absolutely dread because it is so much work, or kind of look forward to because of the possibility of a refund. No matter how you feel about the subject, this year will be different because it is the first year we all prepare our taxes based on the changes from the 2017 tax reform.

Important Disclaimer – I am not a CPA, for that reason, do not take this as tax advice.

What I can speak to is that there have been major changes to the tax law. For example, the Child Tax Credit has changed. In case you were wondering, that cute tax deduction…I mean kid…is my trusted team member’s (Chris McGann) little boy.  Almost as important as our kids are our homes, and there have been changes to the tax law that affect home ownership. For example, homeowners are now only allowed to deduct a combined maximum of $10,000 in property and state income taxes on their federal returns – even if the amount they paid was greater than $10,000. There was also a significant change to the mortgage interest deduction. The cap on this deduction was lowered from $1 million to $750,000. While this doesn’t affect all of us, it does impact many people who live in high cost areas like the Bay Area. Ultimately, there are several noteworthy changes to the tax code that could impact you this year. Don’t wait until the last minute to file.

If you have questions about whether you’re preparing your taxes correctly, I’d be happy to recommend a good CPA.