*By Carlo Versano*
For many of us, the impact of the tax overhaul that went into effect a year ago won't be felt until we file our 2018 returns. Here are some things to remember as tax season approaches (W-2s should start appearing in mailboxes in a month), courtesy of Katelynn Minott, a CPA at Bright!Tax:
2018 returns have big increases in the standard deduction, which is now:
* $12,000 for single filers
* $18,000 for heads of households
* $24,000 for married couples filing jointly
While standard deductions have roughly doubled, the personal exemption has been eliminated. That means you can no longer reduce your taxable income by the $4,050 per household member. The standard deduction increase is generally positive for single and married people, but negative for anyone with dependents.
Filers will also no longer be able to deduct costs associated with job searches and working from home, which will negatively impact freelancers and anyone who spent more than 2 percent of their adjusted gross income on job-related expenses.
The new law also makes it harder to deduct mortgage interest and property taxes.
Filers should be prepared to get acquainted with a vastly different 1040 form, Minott said. And if you had a major life event in the last 12 months ー marriage, job change, child ー don't forget to update your W-4 to reflect that change.
And if you're expecting a refund and need the cash, don't forget the IRS works on a first-come, first-serve basis after you file.
"The earlier you file, the earlier your return will come back to you," Minott said.
Marjorie Margolies, an Emmy-winning journalist and former Congressperson, was on assignment as a reporter in South Korea in 1970 when she adopted 7-year-old Lee Heh. She was the first American ever to adopt a child from another country while unmarried. Cheddar News sat down with Margolies, and her son Vu Pham, as she recounted her story.
A recent survey from tech giant HP shows that while women are very interested in advancing their careers, men are still promoted at a much higher rate. Managing Director of North America at HP Stephanie Dismore joined Cheddar News to discuss the data and how changes brought on by the pandemic helped — and hurt — women in the workforce. "This whole idea of hybrid working is a challenge, but it's also an opportunity. And ideally what it can do for women is provide extreme flexibility, and it gives them an opportunity to really be very vocal about what they need and how they can contribute the best in the environment that they're in," she said. "However, at the same time, while women are applying and wanting to advance their careers. COVID actually had the reverse effect. And if you look at other studies, one in four women actually took a step back from their careers or exited the workforce altogether."
Marshall Mayer, the co-founder of the Let's Buy an Island crowdsourcing campaign, joined Cheddar News to discuss purchasing of the Coffee Caye Island off the coast of Belize, building it into its own micronation, and what challenges he's faced in this process. "First of all we recognize where we are. We know we're in Belize, we're not, you know, we have no ambitions beyond the fun of this project," he said. "When it comes to actually creating this sort of thing, most of the people that started this project myself included are dedicated world travelers. We love going to sort of the unique and strange around the world and getting to know interesting cultures and interesting areas."
The hit show 'Snowfall' about the cocaine epidemic in 1980s Los Angeles returned for a fifth season in February, and Angela Lewis, who plays Aunt Louie on the show, joined Cheddar News to talk about the love that she has received for her role and her approach towards it. "I think the biggest thing that I do is I have to be confident," she said. "You cannot play a character like Louie without — you can't play her shrinking away from anything. You can't play her being insecure about whatever it is you might be insecure about." Lewis also touched on her advocacy for Black maternal health that had been sparked by her own pregnancy.
Catching you up on what you Need to Know on Mar 28, 2022, with peace talks resuming in Ukraine as early as today, Colorado wildfires causing evacuations, Shanghai, China, ramping up restrictions once again, the Oscars debacle between Will Smith and Chris Rock, and more.
