INDIANAPOLIS (WISH) — We’re quickly coming up on Tax Day.
Before you know it, April 15 will be here.
So News 8 wants to make sure you’re ready, especially since it’s the first year the new federal tax rules apply.
Here’s a look at some of the larger changes.
You have always been able to pick the way to tell the government money they cannot tax you on.
You can itemize each item that qualifies, from charitable donations to home mortgage interest to unreimbursed business expenses.
Or you can take the standard deduction, a set number that will be slashed off your taxable income.
It used to be $6,000 if you’re single or $12,000 if you’re married.
This year, both numbers double.
“It does make it easier. There are some groups out there that say they expect 90 percent of taxpayers to use the standard deduction for 2018,” said David Winters, tax manager with Kemper CPA.
Winters says the change in the standard deduction is front of mind for many Hoosiers.
Trying to figure out whether or not to itemize? There are some new wrinkles this year.
If you itemize a home equity loan, it must be for a home improvement.
And then there are state and local taxes. You used to be able to deduct an unlimited amount of two of the three: property, income and sales tax.
But now, that limit is set for $10,000.
While more people may go with the quick standard deduction, you certainly need to know about these changes so you make sure you are making the right choice when it comes to your taxes.