Category: Tax Law
What the Most Sweeping Tax Law in 30 Years Means for You
By Mark Sipos The Tax Cuts and Jobs Act of 2017 is the most sweeping change to the tax code in over 30 years. Understanding these new tax laws and working proactively within them can save taxpayers thousands of dollars. We would like to highlight the major changes of this new tax legislation and how it impacts individual taxpayers. President Trump’s tax plan calls for maintaining the seven brackets found under the old law, however, the new law reduces the rates 2-3% across the various bracket income levels. It’s worth noting that the new tax brackets have dramatically increased the income levels within each bracket, so more of your taxable income will be taxed at lower tax rates! There are deductions to consider as well. Changes are coming for taxpayers who take the standard deduction and for those who itemize. The Trump tax plan increases the standard deduction to $12,000 (for individuals) and $24,000 (for married couples fling jointly), effectively doubling these standard deductions under the old law. Taxpayers who itemize can write off their state and local income, property and general sales tax payments on their federal tax return. This effectively prevents double taxation. Starting in tax year 2018, that deduction is capped at $10,000. Under prior law, homeowners could deduct their mortgage interest payments on mortgages up to $1 million. The new tax plan limits the deduction for mortgages up to $750,000. Interest on home equity line
THE TAX CUTS AND JOBS ACT - CURRENT LAW VS. HOUSE AND SENATE PROPOSALS
Over the weekend of December 2nd, the Senate passed its tax reform bill, with a vote that mostly followed party lines. Find out how thje tax cuts and job acts effect current law vs. house and senate
The Tax Cuts and Job Act: A Balanced Review
We know that many people are curious about the tax bill announced in the House of Representatives yesterday, H.R.1: The Tax Cut and Jobs Act. We’ve put together a balanced review of the bill, and wanted to share it in a timely way. The proposed bill: Condenses individual tax rates to Zero, 12%, 25%, 35%, and 39.6%. Increases the standard deduction from $6,350 to $12,000 for individuals and from $12,700 to $24,000 for married couples. Establishes a new Family Credit, which includes expanding the Child Tax Credit from $1,000 to $1,600 to help parents with the cost of raising children, and providing a credit of $300 for each parent and non-child dependent to help all families with their everyday expenses. Preserves the Child and Dependent Care Tax Credit to help families care for their children and older dependents such as a disabled grandparent who may need additional support. Preserves the Earned Income Tax Credit to provide tax relief for low-income individuals and families. Streamlines higher education benefits to simplify the existing tax code. It also eliminates the student loan interest deduction. Continues the deduction for charitable contributions so people can continue to donate to their local church, charity, or community organization. Preserves the home mortgage interest deduction for existing mortgages and maintains the home mortgage interest deduction for newly purchased homes up to $500,000. Prior law capped the purchase price at
Virteom