DOVER AIR FORCE BASE, Del. --
Tax season is here, and the Dover Legal Office is encouraging everyone to begin preparations early.
January 28 marks the beginning of the first filing season under the Tax Cuts and Jobs Act of 2017, which brought sweeping tax reforms to Americans in all tax brackets. Numerous changes to federal tax law will affect filers for tax year 2018, including:
- An increase in the standard deduction to $12,000 for single filers and $24,000 for married filing jointly
- The elimination of personal and dependent exemptions
- A limitation on itemized deductions, including a $10,000 cap on state and local tax deductions
- A decrease to individual income tax rates
- An increase in Child Tax Credit, which is available to more families than in the past
- A nonrefundable credit for non-Child dependents, such as a 17-year-old child or elderly parent
- Alimony payments, are no longer deductible and are excluded from the recipient’s taxable income
- A taxpayer may deduct interest only on mortgage debt up to $750,000, but the limit remains at $1 million for mortgage debt incurred before Dec. 15, 2017
- The deduction for moving expenses has been eliminated, except for active duty members of the Armed Forces and their dependents moving due to Permanent Change of Station
- Taxpayers may claim a deduction of no more than $10,000 for the aggregate of state and local property taxes and either income or sales tax
With all of the changes affecting taxpayers under the new tax law, you are encouraged to seek self-help resources and/or professional assistance with understanding and filing your taxes this year.
Due to limited resources, the Dover Legal Office will not be hosting a tax workshop; however, you can seek assistance from a local AARP Foundation Tax-Aide Program. AARP Foundation Tax-Aide volunteers will be available at Dover Public Library, Kent Library in Camden, Milford Senior Center, Harrington Senior Center, Modern Maturity Center in Dover, Harvest Years Senior Center in Camden, Mamie Warren Senior Center in Smyrna and at numerous libraries and senior centers in New Castle and Sussex counties. Services may be limited, so when calling to schedule appointments, taxpayers should specifically request on-site and military-capable qualified tax preparers.
You can also find free self-help resources online at the Military OneSource Tax Resource Center, such as MilTax – “a suite of free tax services for the military community, including personalized support from tax consultants, easy-to-use tax preparation and e-filing software, as well as helpful articles on filing taxes in the military.”
For any questions, please contact the Dover Law Center at 302-677-3300.