Todd A. Lovins on Tax tips for 2018

by Sam Sentelle

Rotarian Wanda Robertson (left) introduces guests Leigh Ann Ford (Ford & Sweeney Accounting & Tax Services) and speaker Todd A. Lovins

Todd A. Lovins

Federal tax changes reviewed

February 6, 2018

With major changes now in place in the federal tax code, accountant Todd Lovins is eager to move into his new office for Ford & Sweeney on Teays Valley Road. The revisions were signed into law on December 22nd, and Lovins was ready today to answer questions about the changes for Putnam Rotarians during their weekly luncheon meeting.

Standard deductions nearly double for 2018: The deduction for singles will increase from the current $6,350 for 2017 to $12,000; couples filing jointly will jump from 12,700 to $24,000. Before the change and without itemizing, the standard deduction was $6,350 for single taxpayers and $12,700 for couples filing jointly. Deduction for the head of household in tax year 2017 was $9,350.

For tax year 2018 these will change to $12,000 for singles and $24,000 for joint filings. Heads of the household will get a deduction of $18,000.

Most itemized deductions will end for 2018.

Deductions on state and local taxes for 2018 will be limited to $10,000, and mortgage interest deductions have been reduced for some new homes.

“The child tax credit is still there,” he said. “It goes from $1,000 to $2,000. The cutoff for marrieds filing jointly is increased from $110,000 to $400,000.” Realtors and sales people who now claim milage as a deduction will no longer be able to claim milage next year. Although the standard deduction increases, the loss of a mileage deduction could push the net income into a higher tax bracket.

“Starting this week — or maybe last week — payroll tables have changed,” he said, “so that exemptions will reflect your net income. Most of us will see some sort of a raise, if not on last paycheck [then] on this paycheck. “That raise is coming from a cut in federal taxes.” Lovins distributed charts which indicated changes from the current law to tax year 2018: The number of brackets remain at seven, but thresholds are revised and percentage for tax at each threshold also changed except for brackets one (10 percent) and six (35 percent).

Thresholds have increased for brackets one through three, and dropped for four through six. The thresholds for bracket seven increased, but the percentage for this highest bracket drops from 39.6 percent to 37 percent.

Rotarian Wanda Robertson (left) introduces guests Leigh Ann Ford (Ford & Sweeney Accounting & Tax Services) and speaker Todd A. Lovins
Rotarian Wanda Robertson (left) introduces guests Leigh Ann Ford (Ford & Sweeney Accounting & Tax Services) and speaker Todd A. Lovins
Rotarians chat with visitor Will Miller today, business retention specialist for the Putnam County Devel- opment Authority. Pictured with Miller (left to right) are Ashley Alford, Kelli Dailey and Amanda Ramey.
Rotarians chat with visitor Will Miller today, business retention specialist for the Putnam County Devel- opment Authority. Pictured with Miller (left to right) are Ashley Alford, Kelli Dailey and Amanda Ramey.

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Sam Sentelle


One thought on “Todd A. Lovins on Tax tips for 2018

TODD LOVINS

It is great to be in the Hurricane – Teays Valley area. We are looking forward to joining the Putnam County Rotarians, and serving in Putnam County. I want to thank all of you for the warm welcome that you extended to Leigh Anne Ford and I. I trust that Ford & Sweeney can be an asset to this area. Though we have not joined yet, you can imagine the craziness of tax season, ( I will get the application back asap). We would like to extend our tax preparation service for free to a few folks that you may know that needs a little help and can not afford a professional accounting service

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