Jill On Money With Jill Schlesinger

With tax season in full swing, it can only mean one thing. It’s time for our annual chat with Ed Slott, the ultimate tax guru, and founder of IRA Help. Here is your tax season boot camp for the first tax year of the Tax Cuts and Jobs Act (TCJA). Itemized vs. Standard Deduction: Every taxpayer needs to determine whether it makes sense to claim one of these two deductions, both of which reduce the amount of income subject to tax. TCJA nearly doubled the Standard Deduction to $12,000 for Single and Married Filing Separately, $24,000 for Married Filing Jointly and $18,000 for Head of Household. A couple of caveats on itemized deductions: Your total deduction for state and local income, sales and property taxes is limited to a combined, total deduction of $10,000 ($5,000 if Married Filing Separate). Any state and local taxes you paid above this amount cannot be deducted. The deduction for home mortgage and home equity interest was modified. It is now limited to interest you paid on a loan secured by your main hom