4 Tax Deductions to Take Right Now Before They Disappear for Good
As you've no doubt heard, the U.S. tax code got an overhaul—so what does that mean for the 2017 return you're filing right about now? It means that this is your last chance to take advantage of tax deductions from the old tax code. Yikes!
So, if you aren't sure if you've milked every last drop of tax break goodness out of your returns, it's time to squeeze, hard.
To help you out, here's a rundown of four major tax breaks that are disappearing after this filing year, and how to take full advantage of them before they go bye-bye.
1. Home office
With the increasing popularity of telecommuting and working from home, the home office tax deduction is one that many people opt to take. If you're full-time self-employed, this deduction will continue in 2018. But for all you office workers who work in your "home office" on the occasional Friday? The gig is up.
"In 2018, for non-self-employed people, the home office deduction is going away entirely," says Eric Bronnenkant, CPA, CFP, and Betterment's head of tax.
So if you're a W-2 employee, start saying your tearful goodbyes to your home office deduction—but not after you've had one last hurrah filing your 2017 return. The home office deduction falls under what's called "miscellaneous deductions," and includes business expenses that are not reimbursed by your employer. Miscellaneous deductions can't exceed 2% of your adjusted gross income, but if you meet the requirements, you can take the deduction in 2017.
Here's more info on how to take a home office tax deduction.