This week we will take a break from lists of deductions to break down a specific concept: chained CPI. Many readers and taxpayers will be familiar with the Consumer Price Index, or CPI. The CPI is a measure of inflation that watches price changes in a set “basket of goods” over time. As a gallon … Read more CPI and Chained CPI: What’s the difference?
This week we will cover a few more headline-grabbing changes for individuals from the tax reform package. First, Congress eliminated the Obamacare coverage mandate, and there will be no penalty starting 2019. Unfortunately for those looking forward to immediate savings, this does not apply yet—without a waiver or exemption, taxpayers still need health insurance until December … Read more Tax reform quick hits
We have nearly finished covering the changes made to individual taxation! Business owners can prepare for the upcoming crash course in new tax structures, but for now, we return to the adjustments that affect those who itemize their deductions. First is the State and Local Tax Deduction, known as SALT. Previously, taxpayers could deduct the entirety … Read more Changes to the Big Three: SALT, home mortgage interest and charitable contributions
This week’s post may be a little dry for some, but is aimed at the 30% of Americans who itemized deductions on their Schedule A. If you were in this group, you may be wondering what deductions were eliminated after we told you last week that the tax reform bill encourages a shift to the … Read more Tax reform and itemized deductions