Mark Summers gave a presentation on “Tax Update: Understanding New Changes in 2018 and Beyond” on September 15, 2018. Thirty-four people attended. Mark focused on three areas that may have impact on us as individual taxpayers:

1. *New Tax Brackets
   

2. *Modified Deductions and Changes
   

3. *Other Tax Situations
   

In 2018 and beyond, because of the new larger standard deductions, at least 15% of the taxpayers may itemize. Before 2018, about 1/3 of the taxpayers have itemized their deductions, allowing them to take advantage of the deductions for mortgage interest, charitable donations, medical expenses, etc.

New Tax Changes in 2018 include:

1. *State and Local taxes are capped at $10,000 for the married filing jointly and $5,000 for married filing separately.
   

2. *Mortgages capped at $750,000 for the full mortgage interest deductions
   

3. *Medical Expenses will have 7.5% Adjusted Gross Income in 2018 and 10% in 2019
   

4. *Home Equity Interest is eliminated
   

Because of the tax law changes, you should do a paycheck checkup using the IRS’s Withholding Calculator [https://www.irs.gov/individuals/irs-withholding-calculator]. If necessary, complete a new W-4 form [https://www.irs.gov/pub/irs-pdf/fw4.pdf]. The calculator will help you determine the right amount of withholding. For more information, see: https://www.irs.gov/tax-reform.