Tennessee - No tax on wages
New Hampshire - No tax on wages
Certain restrictions apply to some states, such as age, how much income can be excluded, and other factors.
I will update this page as we get closer to the filing year.
Under the Tax Cuts and Jobs Act of 2017 (the Act), taxpayers may no longer deduct unreimbursed employee expenses—including unreimbursed expenses related to business use of a personal vehicle—as “miscellaneous itemized deductions” to the extent the total of such expenses exceeds 2 percent of his or her AGI. However, the 2018 alternative standard mileage rate applicable to eligible business use of a vehicle is 54.5¢ per mile, up from 53.5¢ in 2017. In order for such expenses to be deductible, they must have been:
The Act has increased the standard deduction for 2018. Under the new law, standard deductions are:
A taxpayer who can be claimed as a dependent is generally limited to a smaller standard deduction, regardless of whether the individual is actually claimed as a dependent. For 2018 returns, the standard deduction for a dependent is the greater of:
The AMTI exemption amount is reduced (but not below zero) by 25 percent of the amount by which the taxpayer’s alternative minimum taxable income exceeds:
This is a pretty big change:
High-income taxpayers are subject to higher capital gain and qualified dividend tax rates. For tax years beginning in 2018, the long-term capital gain and qualified dividend tax rate is 20 percent for married taxpayers filing jointly whose taxable income exceeds $479,000 and to singles whose taxable income exceeds $425,800.
For taxpayers in lower income tax brackets:
Before passage of the Act, an eligible educational institution at which a distribution for expenses of enrollment or attendance would be considered qualified education expenses under a § 529 Tuition Savings Plan included an educational institution eligible to participate in a student aid program administered by the U.S. Department of Education such as a:
Elementary and secondary school expenses were not considered qualified education expenses. The Act broadens the definition of qualified education expenses by authorizing an annual qualified distribution of contributions made after December 31, 2017 (and income on such contributions) of up to $10,000 from all of a taxpayer’s § 529 plans for elementary or secondary school tuition. Such schools may be:
Many taxpayers have encountered individuals impersonating IRS officials – in person, over the telephone and via email. Don’t get scammed. The IRS wants you to understand how and when the IRS contacts taxpayers and help you determine whether a contact you may have received is truly from an IRS employee.The IRS initiates most contacts through regular mail delivered by the United States Postal Service.However, there are special circumstances in which the IRS will call or come to a home or business, such as when a taxpayer has an overdue tax bill, to secure a delinquent tax return or a delinquent employment tax payment, or to tour a business as part of an audit or during criminal investigations
Even then, taxpayers will generally first receive several letters (called “notices”) from the IRS in the mail.
The IRS does not:
#1. Contribute to an IRA, 401K, 403B, 457 plan before you do any other kind of after tax savings for retirement! then contribute to a HSA or FSA for your health expenses
HSA - The amount you or any other person can contribute to your HSA depends on the type of HDHP coverage you have, your age, the date you become an eligible individual, and the date you cease to be an eligible individual. For 2016, if you have self-only HDHP coverage, you can contribute up to $3,350. If you have family HDHP coverage, you can contribute up to $6,750
FSA-You don’t pay federal income tax or employment taxes on the salary you contribute or the amounts your employer contributes to the FSA. However, contributions made by your employer to provide coverage for long-term care insurance must be included in income
Five Tax Credits that Can Reduce Your Taxes
Tax credit reduces the amount of tax you must pay. A refundable tax credit not only reduces the federal tax you owe, but also could result in a refund.Here are five credits the IRS wants you to consider before filing your 2012 federal income tax return: