Updates and Advice:
For tax year 2018, there are some adjustments to the primary Arizona tax credits:
Non-Refundable Credits |
Individual Filers |
Married Filers |
Private School Tax Credit |
$1107 |
$2213 |
Public School Tax Credit |
$200 |
$400 |
Foster Care Tax Credit |
$500 |
$1000 |
Charitable Tax Credit |
$400 |
$800 |
The tax deadline for filing your 2018 taxes is April 15, 2019. You have until this date to take advantage of these state tax credits and apply them to your 2017 taxes.
With the new tax bill that has been passed, there have been some significant changes that will affect everyone to some degree. When each of you come in for your appointment, I will be happy to go over how these changes will affect you personally. In general, please be mindful of the following:
-This bill will provide a modest tax break to most filers. However, there will be some exceptions. If you are an employee who has previously taken large deductions for reimbursed employee expenses, the new laws may have a negative impact on your overall return as these items are no longer deductible. Expenses for rental homes and the self-employed will continue to be deductible.
-The repeal of the health insurance mandate does not go into effect until 2019. You will be penalized for not having minimum essential coverage throughout 2018.
-The standard deduction did increase for 2018 which means that many filers will no longer itemize deductions on their federal tax returns. However, nothing significant has changed with Arizona (and most other states') tax laws. For the vast majority of individuals within Arizona, it will still be beneficial for them to itemize on their state returns even if they are taking the standard deduction on the federal. Please continue to keep track of your itemized deductions as you have in the past, or you could be missing out on some significant tax breaks on the state return.
With an industry that is constantly evolving, I am happy to serve and assist you in any way I can. If you have any questions or need some help getting things in order, please contact me directly.
-Brandon Johnston, EA
With the new tax bill that has been passed, there have been some significant changes that will affect everyone to some degree. When each of you come in for your appointment, I will be happy to go over how these changes will affect you personally. In general, please be mindful of the following:
-This bill will provide a modest tax break to most filers. However, there will be some exceptions. If you are an employee who has previously taken large deductions for reimbursed employee expenses, the new laws may have a negative impact on your overall return as these items are no longer deductible. Expenses for rental homes and the self-employed will continue to be deductible.
-The repeal of the health insurance mandate does not go into effect until 2019. You will be penalized for not having minimum essential coverage throughout 2018.
-The standard deduction did increase for 2018 which means that many filers will no longer itemize deductions on their federal tax returns. However, nothing significant has changed with Arizona (and most other states') tax laws. For the vast majority of individuals within Arizona, it will still be beneficial for them to itemize on their state returns even if they are taking the standard deduction on the federal. Please continue to keep track of your itemized deductions as you have in the past, or you could be missing out on some significant tax breaks on the state return.
With an industry that is constantly evolving, I am happy to serve and assist you in any way I can. If you have any questions or need some help getting things in order, please contact me directly.
-Brandon Johnston, EA