Here is my Key Takeaways for the individual portion of this Act:
You will no longer get fined for not having health coverage.
Alimony payments can no longer be deducted.
The medical and dental expenses threshold for itemizing is now 7.5%
Most tax rates were lowered, the standard deduction was increased and the child tax credit was increased.
Limitations on itemized deductions when AGI is over a certain threshold have been eliminated.
The W4 has been updated.
Estimated tax may be owed by employees who do not have enough withheld from their paycheck. Make sure you double check your W4 to ensure you are having the correct amount withheld.
For more information, please check out this resource https://www.irs.gov/pub/irs-pdf/p5307.pdf or call Fleig Financials at 361 443-3787 to discuss further.
Written by Laura Fleig
September 2, 2020
www.fleigfinancialsllc.com
