Dustin from Insight Tax breaks down four 2018 tax changes for individuals: alimony payments are no longer deductible, moving expenses can't be deducted, the child tax credit doubled to $2,000 per child, and 529 education plans now cover K-12 private school tuition.
Hey guys, Dustin from Insight Tax here, just going over a couple more items from the 2018 tax reform. So we're gonna touch really quickly on 4 items. First, alimony. Historically, alimony has been a deduction for the person paying it and is income to the person receiving it. Under new tax reform, no deduction for the person paying it, not considered income for the person receiving it. There's gonna be some specifics about when your divorce is finalized and some other items, so make sure to talk to us about that if that applies to you. Second item is moving expenses. Historically, if you've had to move because of a job change or other items, you could deduct moving costs. No longer the case anymore. Moving expenses are not deductible, so that has gone out the window. Third thing we're going to talk about real quick is child tax credits. Historically, if you've had children under the age of 17, they've been worth $1,000 to you on your taxes. That now doubles under new tax reform, so each child is worth $2,000. In addition, higher wage earners or people with income above $125,000, that phased out. That phase-out now is significantly higher, like $400,000, so a lot more people are going to be able to take advantage of the child tax credits. Last thing we want to talk about really quick is qualified education expenses. This is going to typically deal with your state 529 plans or state education plans. Historically, you've only been able to deduct or pay for secondary education out of those plans, so universities, colleges, those types of things. New tax reform now includes the ability to make payments for K-12 private school education expenses from your education plan, your 529 plan, so that might be applicable to you in your scenario.
