The new federal tax code will both help and hurt many taxpayers – starting with the return that is due in April. A lot of federal tax income tax deductions will be out of reach for millions of taxpayers this tax season. In some cases, it’s because the Tax Cuts and Jobs Act of 2017 ended, suspended or limited the deductions effective for tax year 2018 – the return that’s due by April 15. In other cases, it will not be in taxpayers’ financial interest to claim the deductions, because they do better if they instead claimed the higher standard that kicked in this past tax year.
How it helps
The standard deduction for tax year 2018 will be nearly double from the prior year.
How it hurts
Fewer taxpayers are expected to itemize their deductions – rather that claim the standard deduction – this tax season.
Itemized deductions can include:
Rev. Dr. Donna Taylor is the Pastor of Andrew Chapel, United Methodist Church on the Northern Neck in Montross, VA. Rev. Dr. Taylor promotes best practices for financial literacy and financial empowerment in the church and leads workshops throughout Northern Virginia. Currently, she serves as the Chair of the District Finance Committee. In May 2015, Rev. Dr. Taylor received her Doctor of Ministry from Virginia University of Lynchburg in Lynchburg, VA. Rev. Dr. Donna Taylor is married to Dr. David Taylor, who is also the Director of our church-based free clinic. They have two adult children and three grandchildren. In her leisure time, Rev. Dr. Taylor enjoys traveling, jogging, weightlifting, swimming, yoga, and interior decorating. In May 2015, Rev. Dr. Taylor received her Doctor of Ministry from Virginia University of Lynchburg in Lynchburg, Virginia. Rev. Dr. Taylor was born and raised in New York City and recently discovered her ancestral roots in Guinea-Bissau, West Africa. Rev. Dr. Donna Taylor is married to David Taylor and they have a son and a daughter. Their daughter is a educator and son is an Active-Duty Senior Seaman in the Navy married with three children. In her leisure time, she enjoys traveling, reading, swimming, writing poetry, crocheting and spending time with her family.