Mortgage interest has been a standard deduction for most homeowners for years and is certainly one of the more popular. The biggest change reduced the loan limit on which mortgage interest can be deducted from 1 million dollar mortgage to a 750,000 mortgage. When you compare the national median home value today somewhere near 240,000, these new limits wonrsquo;t affect that many home owners. But for those living in higher cost areas and fall into the upper tier tax brackets, they will indeed see some changes.
Another change >
In addition, the deductions for state, local and property taxes, sometimes referred to as SALT, have limits. The new limits for SALT deductions is now 10,000 but again primarily affect higher income earners.
Other changes implemented in 2018 affect:
bull; Higher standard deduction to 12,000 for single filers and 24,000 for joint filers
bull; Personal exemption eliminated enti>bull; Income tax rates reduced for most filers
bull; Child tax credit boosted
bull; More medical expenses allowed
There are many other changes but these are the ones most commonly addressed when filing income taxes. Finally, this information is not considered tax advice. For information on how these changes affect your personal situation, you need to speak with your tax professional.
