Now that tax season is over (unless you filed an extension), you may be happy to forget about your taxes for a while. However, there are a lot of new tax laws that will affect your taxes and insurance for next year. Here are a few changes that could affect you, so that you can plan ahead for the rest of the year to avoid surprises.
Some mortgage insurance deductions are going away! Private mortgage insurance payments on conventional loans and mortgage insurance premiums charged on FHA and USDA loans were previously considered tax deductible. In 2017, Congress decided not to renew that provision for the 2017 tax year. This means that mortgage insurance payments are no longer deductible, beginning with your 2017 return. While you may continue to account for your interest deductions, insurance payments will no longer be included.
There is also a big change to property taxes. Under the former tax law, you could take full deductions for every dollar of your local, state and property taxes. In 2018 and going forward, your state, local and real estate taxes are put into one pool for deductibility purposes. Between the three of them, you only can deduct up to a limit of $10,000 total.
Planning on moving? Deductions for moving expenses is also going away. Under the former tax law, there was a limited ability to deduct moving expenses when the relocation was work-related. Starting this year, this only applies to active-duty members of the armed forces.
For more information on how the new tax laws could affect you and your insurance needs, call Palm Desert Insurance today at: 888-880-8872