Tip 1. Hire a CPA (a Certified Professional Accountant). It will save you more than it costs, unless your income in under $90,000. PS – Don’t think canned software is a cheaper way out. It’s not. Small mistakes produce expensive taxes.
Tip 2. Grab the 20% tax deduction for “qualified business income.” That basically income from “flow-through” businesses, like LLCs. It got enacted in 2017 as compensation for all those tax cuts for the rich. For details on how it works, check out https://homeinspectionschool.info/2018/02/the-new-tax-bite-your-2018-pli-taxpayer-gps/. Then refer to Tip 1.
Tip 3. Tuition and fees are deductible – up to $4,000 – for tax years 2019 (and 2020). This break expired but got resurrected. There are income limits — $130,000 in Adjusted Gross Income for married couples filing jointly, $65,000 for individuals.
Tip 4. Mortgage interest deductions were capped by the 2017 law. A married couple can deduct the interest on no more than the first $750,000 of a mortgage. This is another tax divorce incentive. The same two people could deduct up to $750,000 in mortgage interest each if they filed separate tax returns, even if they use one loan to buy the same home together.
Tip 5. Anyone who pays mortgage insurance ow can deduct those costs in tax years 2018 through 2020, but only by itemizing.
Tip 6. There’s more. See Tip 1.
To find the new tax rules for LLCs and solos, go to https://homeinspectionschool.info/2018/02/the-new-tax-bite-your-2018-pli-taxpayer-gps/.
For details on the retirement rules, check out https://homeinspectionschool.info/2019/03/tax-breaks-for-all/.