IRS & state of utah now accepting tax returns

The new tax law produced many changes and much confusion. Below is a summary of some of the most important tax items you should know.
Filing status remains same

• Single
• Married Filing Joint
• Married Filing Separate
• Qualifying Widow/er
• Head of Household

 
There are now seven rates: 10%, 12%, 22%, 24%, 32%, 35% and 37%.
 
Standard deductions have been increased

• Married Filing Jointly/Qualifying Widow - $24,000
• Head of Household - $18,000
• Single/Married Filing Separate - $12,000.
• The additional standard deductions for taxpayers 65 or older and/or blind are unchanged.

 
Long-term capital gain rates remain unchanged at 0%, 15% and 20% determined by income. 
 
Alimony received will not be taxable to the payee spouse and will not be deductible by the payor spouse effective in 2019 for agreements executed after December 31, 2018. Existing agreements are grandfathered, meaning alimony is still taxable/deductible per 2016 tax rules.
 
A maximum deduction of $10,000 ($5,000 for married taxpayers filing separately) is allowed for any combination of state and local income taxes or general sales taxes and state and local property taxes. State income taxes imposed in 2018 may not be deducted in 2017 if pre-paid in 2017. This is important because any prepayment for 2018 will be treated, for federal tax purposes, as if paid in 2018.
 
Foreign real property taxes: No deduction will be allowed for foreign real property taxes
 
These credits remain unchanged

• Earned Income Tax Credit
• Child and Dependent care credit (daycare)
• Education credits (American Opportunity Tax Credit and Lifetime Learning credit)
• Retirement Saver’s Credit.

 
One or more of these changes/credits may apply to you. To find out feel free to call us at (801) 210-1553 and we’ll help you get every credit and deduction legally allowable to you.