Tax Reform 2019

Money Management
1

Hi, I am a tax preparer and have been doing taxes for over 20 years. Here are a few changes that are going into effect this year:

  • Personal Exemptions have been removed

  • Standard deductions have been almost doubled

  • Tax brackets have been changed. They have gone down.

  • Business expenses for non self employed personnel have been eliminated.

I will be happy to explain any of these for anyone who would like. Those are just a few.

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2

Thank you, @lisa.eichinger, for sharing your expertise with the community. What about charitable donations?

3

You can still write off charitable donations; however they fall under the itemized section and if your total itemized deductions are less than the standard deduction, it won’t be beneficial to take the itemized deductions.

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4

@lisa.eichinger Thank you! Now that the standard deduction has almost doubled, I suspect a lot less returns will be itemized.

5

Yes I would say so. That’s what the government was hoping for so it could be easier on the tax payers and less mistakes could be made.

6

Lisa Eichinger posted:

Hi, I am a tax preparer and have been doing taxes for over 20 years. Here are a few changes that are going into effect this year:

  • Personal Exemptions have been removed

  • Standard deductions have been almost doubled

  • Tax brackets have been changed. They have gone down.

  • Business expenses for noon self employed personnel have been eliminated.

I will be happy to explain any of these for anyone who would like. Those are just a few.

What are the changes for personal businesses and the self employed?

7

We’re resident aliens and I read somewhere for dependent (kids), will they still be eligible for child credit or not? Heard there are some changes ?

8

Lynn - personal businesses and the self employed didn’t have much change.

  • You may be able to deduct up to 20% of your qualified business income from your qualified trade or business, plus 20% of your qualified REIT dividends and qualified PTP income. The deduction can be taken in addition to your standard deduction or itemized deductions.
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9

Amronnie -

  • Yes, dependent children need to have a SSN for the child tax credit. If they do not have an SSN then there is a new credit for other dependents that the children would fall under. It is a credit of up to $500 per child.
10

How are you supposed to file as an independent contractor?

11

Brianna,

What exactly do you mean?