Question from the Mailbag:
Q: Since we will use the new, larger, federal standard deduction for 2018, do we still need to gather and provide any itemized deduction information for preparing my 2018 taxes?
A: Definitely, YES! Please provide your tax preparer with the usual paperwork for mortgage interest expense, charitable donations, medical health premiums, and real estate taxes paid.
While it may be obvious that the new federal standard deduction (e.g., $24,000 joint filer and $12,000 single filer) will exceed your allowable itemized deductions, it’s very likely you will be eligible for the Wisconsin itemized deduction credit (i.e., that credit is equal to 5% of total mortgage interest & charity donations). So, yes, please gather those tax documents and charitable information and provide it to your preparer.
NOTE: With respect to those “miscellaneous” itemized deductions -– investment advisor fees, unreimbursed employee business expenses, safe deposit box, union dues, etc. — those deductions are NO longer deductible thanks to the Tax Act and Job Cuts Act. So please retain those records at home.
Please contact your Wegner tax advisor for other questions you have regarding your 2018 tax return or the impact of the Tax Act and Job Cuts Act.
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