How Will the New Tax Legislation Affect Military Families?
When major tax legislation is passed, there are always questions about how it will directly impact your life. For military families, in particular, there are always concerns about whether they are affected by changes or if there are exemptions given to members of our military. And while these changes won’t affect your filings for this tax season, it’s very important to consider when making financial decisions in 2018!
Major Changes For Everyone
First, let’s look at some of the general changes that will affect everyone filing in 2018, not just military families. Child tax credits have been expanded to $2,000 and will be refundable up to $1,400, allowing for a much larger credit for families. Standard deductions have been increased, but at the cost of the now eliminated personal exemptions. Income rate changes have been adjusted, and state tax has been pushed up. But these general changes can be found in most breakdowns of the new legislation.
Military Deductions for Moving
One of the larger concerns for military families when reading through the new tax legislation is the elimination of deductions from moving, which allows you to deduct expenses “if your relocation relates to starting a new job or a transfer to a new location for your present employer” (IRS.gov). If you’re active duty military, you can breathe easy: the military specifically is still allowed to take deductions from moving expenses. So don’t forget to track your costs if you receive a new assignment this year!
What Does That Mean for 2018?
The big things to keep in mind when making financial decisions in 2018 aren’t going to be significantly changed from other years.
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