The Tax Cuts and Jobs Act enacted in December suspended the work-related moving-expense deduction for 2018 through 2025. Also suspended is the exclusion from income of qualified employer reimbursements of moving expenses.
Lawmakers proposed changing the gain exclusion on the sale of a taxpayer’s principal residence, but the final version of the sweeping tax-reform law left this unaltered. If you sell your primary residence this summer, the gain exclusion available is still $250,000 per taxpayer or $500,000 for married couples. The requirement remains that it has to be your primary residence for two of the past five years.
Also still available are tax credits for dependent-care expenses. Many parents pay for childcare or day camps in the summer when the kids are out of school. Depending on your income, up to $3,000 in tax credits per year for one qualifying child, or $6,000 for two or more, is available. The expenses must be necessary for the care of children under age of 13 so that parents can go to work. If one of the parents does not have earned income, the credit will be disallowed. An exception to this rule is if the parent is a full-time student or physically or mentally incapable of caring for themselves. It is also important to note that overnight camps or summer school tutoring costs do not qualify for the credit.
Keep good records of the expenses you incur. You will need the name, address and employer identification number or social security number of the care provider for your tax return.