For some people, the new tax changes mean they will owe more tax. You are most likely to owe more tax in 2018 if:

  1. You previously took large deductions for state and local taxes, including property tax. The total deduction on one tax return is now limited to $10,000 ($5,000 if married filing separately).
  2. Your mortgage interest deduction is limited. If you have a mortgage higher than $750,000 that you took out after December 15, 2017, you can only deduct mortgage interest on the first $750,000 of your loan. In addition, you cannot deduct interest on home equity lines of credit (HELOCs) unless you used the money to buy, build, or substantially improve your home.

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