For those who can afford it, 2018 could be a much better time to get sick than 2016 was.
That’s because the 2018 tax law lowers the threshold past which you can deduct medical expenses from 10% of your Adjusted Gross Income to 7.5% – and it makes this reduction retroactive to 2017.
That means that, if you do happen to have significant medical expenses, your ability to claim them as a tax write-off will kick in sooner – and maybe you should take another look at your 2017 medical expenses.
Need help with that? Contact Tax Ninja for a consultation.
Much of the reporting on the new Republican tax plan emphasizes how much money it will save businesses. But it could also put a dent in a traditional business practice: business meetings on the golf course.
The new tax law eliminates a 50 percent deduction for business-related expenses that include concerts, sporting events, and golf.
“I doubt it will impact the high-end of the business world like guys playing at Augusta or Pine Valley, but it will definitely cause more scrutiny of corporate outings and probably force people who mix golf and business to better justify a day outside,” Blue Heron Research Partners CEO David Rynecki said, according to Golf Magazine. “Consider that you just saw the cost of [business] golf double.”
It’s just one of the many unpredictable changes to the way money flows through the economy caused by a tax bill that was passed before it could be adequately studied.
How will the 2018 tax law impact you?
Contact Tax Ninja for a consultation to find out.
That depends. Do you earn money through your own:
- Sole Proprietorship?
- S Corporation?
If you do, that income may be eligible for a 20% deduction right off the top, before it even reaches your personal income taxes.
If you qualify, we can help you do that. Contact Tax Ninja for a consultation.
The new 2018 tax law is being hyped by politicians as a tax cut for all America, but how will the cuts actually be distributed?
The truth is that it will depend on the kind of year people have and how the economy’s doing. But in the meantime, Politifact has been running the new law against current economic forecasts, and come up with the following results:
- 80% of Americans will see some kind of tax cut in 2018
- For about 40% of households on the lower end of the income spectrum, the cuts will average $480 or less
- The richer 60% of households will see cuts ranging from $1,090 to $285,490 (for the very top earners)
But your personal results will depend significantly on where you live, whether you own property, what kind of deductions you’ve taken – frankly there isn’t really a “typical” case for people with interesting or complicated financial lives.
How will the new tax law affect you? Tax Ninja can help you find out, prepare, and save money.
Contact us for a consultation.