$500 nonrefundable credit for each qualifying dependent on the return (other than child under 17)
The new tax law allows 529 distributors to cover K-12 educational costs as well as college.
*INCREASE FROM 2017*
Child tax credit is $2,000.00 for a dependent child under the age of 17, and did not turn 17 within that tax year. However, the exact amount of tax credit actually received on the tax return may be affected by the annual income. Phase-out increased to $200K for single filers and $400K for married filing joint.
Donate as much as possible to IRS recognized charitable organizations. (Cash or Non-Cash). Please obtain a receipt from the organization or charitable foundation. Take pictures of larger items in order to obtain a larger tax deduction for those items. Charitable contributions help to increase deductions and reduce taxable income.
*DECREASED FROM 2017*
Out-of-pocket medical expenses must exceed 7.5% of Adjusted Gross Income Medical expenses do not include pre-tax payroll deductions for company health insurance benefits.
For 2018 a maximum of $15,000/person; however this is not tax deductible to gifter, nor is it taxable income to the recipient.
For 2018, maximum contributions of $18,500 under the age of 50. Over the age of 50, an additional $6,000 may be contributed (catch up contributions).
The Adjusted Gross Income (AGI) phase out range for taxpayers married filing joint in 2017 was $183,000-$193,000 / 2018 = $189,000 - $199,000. Phase out range for single and head of household filer for 2017 was $116,000 and $131,000 / 2018 = $120,000 and $ 135,000 respectively.
Short-Term capital gains are taxed as ordinary income. Long term gains are taxed 0%, 15% and 20% depending on income and filing status.