RENO, Nev. (KOLO) - The passage of the GOP’s new tax plan has received its share of headlines, starting with the corporate tax rate changing from 35% to 21% and mortgage interest being capped at $750,000.
There is a number of smaller changes that will be impacting taxpayers as well, says Kirk Gardner, a CPA and one of the partners at Eide Bailly in Reno.
“They’ve eliminated an itemized deduction that used to be called miscellaneous,” he explains. “That included things like employee business expenses. You used to be able to potentially take items as a miscellaneous itemized deduction.”
Gardner says part of this change is to simplify taxes, and there will be a big change involving the standard deduction.
“They’ve almost doubled it,” he said. “For married couples filing jointly in 2017 it was close to $12,000 and now it’s going to go to $24,000.”
For a more in-depth look at these changes that will affect the taxes you file for the 2018 year, take a look at a breakdown by Business Insider.