If you bought a home, you might be able to deduct things like real estate taxes, property taxes, and mortgage interest paid.
However, due to tax reform, the limit on how much you can deduct when you itemize deductions in 2018 and beyond has been capped.
The mortgage interest is capped at interest paid on no more than $750,000 of the principal. The maximum state taxes, state and local income or sales taxes, real estate taxes, and personal property taxes are now limited to or capped at $10,000 in total.
Alternatively, instead of itemizing, you can opt to take the standard deduction, which has nearly doubled due to the 2017 Tax Cuts and Jobs Act. The standard deduction by filing status is as follows:
- Single: $12,000
- Head of Household: $18,000
- Married Filing Separately: $0 if spouse itemizes or $12,000 if spouse uses standard deduction
- Married Filing Jointly: $24,000
- Qualifying Widow(er): $24,000
Why Jackson Hewitt®?
We’re not tax machines. We’re Tax Pros who are happy to answer all of your questions, provide you with tips, and help you get smarter about your money.
We’ve seen it all — from the simple to the complex — and we’ll get you every credit and deduction you deserve. Our returns come with our Maximum Refund and Lifetime Accuracy guarantees – we’ll get it right or we pay you.
Our Tax Pros are there to help wherever you are. We’re conveniently located and offer a confidential, secure space to discuss your taxes. We’ll even get you started in advance with document drop-off or upload.