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FAQs About: The Tax Cuts and Jobs Act of 2017

How does the Tax Cuts and Jobs Act of 2017 affect me?

The Tax Cuts and Jobs Act of 2017 affects almost everyone. Whether you file an individual, business, and possibly a non-profit return.

I am a W-2 wage earner. How does this tax act affect me differently than the other tax changes?

First you may want to change your W-4 (form to claim tax exemptions).

I have heard that I may not be able to deduct all my property tax and state income tax withholding. Is that true?

Yes. You now can only deduct a total of $10,000 on your federal tax return for property tax, state income tax withholding and state estimated tax payments.

I am an outside salesperson. I receive a W-2 but my company does not reimburse me for such things as client meals, entertainment, and mileage. Will I be affected by the new tax laws?

Yes. You will no longer be able to deduct meals and entertainment and mileage as an unreimbursed employee expense on Schedule A of your tax return.

I am a mechanic. I receive a W-2, but I must buy my own tools, and I belong to a union. Will I still be able to deduct these items?

No. These expenses are no longer allowed as an itemized deduction to be taken on form Schedule A.

I file a short form. I only have a W-2 and I have no dependents. Will my taxes go down?

No. These expenses are no longer allowed as itemized deductions to be taken on form Schedule A of your tax return.

I file a 1040A. I only have a W-2, and I have no dependents. Will my taxes go down?

It is possible. The standard deduction has been increased to $12,000 individuals, $18,000 for heads of household and $24,000 for married couples filing jointly and surviving spouses. Also, an additional standard deduction amount for the elderly or the blind is $1,300. However, the exemption amount for all categories, that was allowed in past years, has been eliminated.