When people filed their taxes this year for the 2017 tax year, they were able to deduct their state and local income, property and sales tax payments on their federal return. What this does is prevents double taxation of course. Some changes in the new tax laws affect state and local tax laws. Here’s the thing, the changes don’t apply to people who pay $10,000 or less as state an local property taxes. The new tax law caps the amount at $10,000.
Also, the new tax plan limits deducting mortgage interest payments. Yet, it won’t affect very many people either. See, the new tax plan limits deductions to mortgages up to $750,000. Also, current homeowners aren’t affected. Only future buyers will have the mortgage interest payment deductions affected.
Also, keep in mind that the new tax law increases the Child care tax credit to $2,000. Plus, filers claim the full credit amount if they make up to $400,000 annually as married couples. For the 2017 tax year, the income cap for full credit was set at $110,000.
Thinking of Purchasing a Home in Orange County, California?
If you’re thinking about buying a home in Irvine or any of the surrounding communities, we can help you find one that’s just right for you. Call us at 949-385-1684 or get in touch with us online to let us know what you’re looking for.
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