Much has been talked about and written about the Tax Cuts and Jobs Act. This is not really tax reform because the tax code has not been made simpler. This is a tax cut meaning that most people will pay less taxes than they did before.
New Tax Brackets
If you earn between $19,050 and $424,950, your tax bracket will decrease. If you do not itemize your deductions because you do not have items such as mortgage interest and property taxes, your standard deduction will almost double. Under the new law, you will automatically get a $12,000 deduction if you are single, $18,000 if you are head of household, and $24,000 if you file jointly. The personal exemption has been eliminated, but the child tax credit has gone from $1000 to $2000.
There are many other changes. Some may be good for you, while others could cost you. Chances are you will save some money in taxes starting this year. Be sure to speak to your CPA or Enrolled Agent concerning specifics if you have a difficult or complex question. However, they may not have the answers yet. They are as confused with some of the changes as the rest of us are.
New Tax Laws 2018
My law practice is limited to representing individuals and businesses who have IRS problems. I often get the question of how the new law affects me and my work. The answer is it may not make much difference. As a general rule, my clients are not within a few thousand dollars of resolving their IRS issues so saving some money every year is not going to necessarily keep them out of trouble. Hopefully, this will give them a little added assistance in staying current with their taxes going forward.
You may or may not like the new law. Many people worry that the tax cuts will increase the deficit. Others believe that the cuts will stimulate the economy and help reduce the deficit. Only time will tell.
Tax Lawyers NJ
My message does not change. Get your tax returns filed on time and get your taxes paid on time to keep the IRS out of your life. If you need the help of a tax attorney, please contact my office.