With the new Tax Cuts and Jobs Act in place, it is important to get the most up-to-date information on filing your tax returns. Taxes and personal finances can be overwhelming, but Wych Tax, your trusted Fort Collins tax accountant, wants to make it simple for you. There are a number of changes to the law that may impact your future tax returns.
- Marginal tax rates have decreased. Beginning in 2018, all marginal tax brackets have decreased. Taxpayers will now be required to pay less tax on a higher level of income. This is ultimately a positive adjustment across the board.
- Standard deduction has increased. The standard deduction that a taxpayer is allowed has nearly doubled. In 2018, single filers can deduct $12,000 and a married couple filing jointly can deduct $24,000.
- Personal exemption has been eliminated. Prior to the new tax law, taxpayers could automatically deduct $4,050 per each person on the tax return. From 2018 forward, no personal exemptions can be claimed. For families with a higher number of dependents, this will have a greater impact.
- Several important deductions have been changed or eliminated. In 2018, there are a variety of deductions that have been modified, including the child tax credit, state and local taxes, moving expenses, etc. Contact Wych Tax to discuss further how each of these deductions may impact you.
Put Your Mind at Ease
The Tax Cuts and Jobs Act has brought with it many changes, big and small. Avoid overlooking any of these items that may affect your tax situation; your Fort Collins tax accountant can discuss how these new laws will impact you and work through each one with you. Contact Wych Tax today to increase your understanding and put your mind at ease!
