How Will You be Affected by the New Tax Reform?

December 29th, 2017 → 11:09 pm @ // No Comments

President Donald Trump signed the Tax Cuts & Jobs Act into law on December 22. The legislation alters the Internal Revenue Code with adjustments such as altering income tax brackets, marginal tax rates, key deductions and exemptions, and the taxation of corporations and pass-through businesses. The good news is that your 2017 taxes will most likely not be impacted by the new tax reform law. Below you will find some information regarding the new law.

How many taxpayers will benefit from all this reform in 2018? Earlier this month, the financial website Business Insider ran some numbers to see how single, childless taxpayers earning $25,000, $75,000, and $175,000 a year would fare in the wake of the reforms. It did so for both the House and Senate versions of the bill. The final Tax Cuts & Jobs Act is based on the Senate version, and under the Senate tax plan, Business Insider projected 2018 tax savings of $369 for a childless taxpayer at the $25,000 level, $2,129 at the $75,000 level, and $5,240 at the $175,000 level. The calculations assumed these taxpayers would use the standard deduction in 2018, rather than itemize.

Using the same three income levels, and again assuming use …Read More

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