THIS PAGE HAS BEEN DISABLED and NEW VIDEOS WILL BE AVAILABLE AGAIN IN NOVEMBER 2019
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✨✨ NEWS FLASH BOX ✨✨
Let's start by saying the Tax Bill called "Tax Cuts and Jobs Act" is over 1,050 pages in its entirely
We will ONLY try to cover what stands out as being the most newsworthy
There are 2 articles here that cover more details than what we have included below
Read more at NY Times or CPA Advisor
We will post here WHEN news is available regarding the NEW BILL and how the changes will impact you
We'll indicate above the date of our postings since it could require updating from week to week
Here are the changes and numbers we know thus far impacting 2018 (tax returns that get filed in February 2019)
There will be a cap of $10,000 on Schedule A for itemizing Property Taxes, State and City income taxes paid
The standard deduction will double for a married couple from the current $12,0000 to $24,000 in 2018
BUT the personal emption deduction of $4,050 per person is eliminated
For a married couple without children this is a benefit of approx. $ 4,000
However, a quick example of how a married couple with 2 kids under 17 will lose out:
In 2017 a family of 4 received:
$4,050 per person x 4 = for a total of $ 16,200 in personal exemptions
The standard deduction of = $12,000
Child Tax Credit of $ 1,000 for kids under 17 x 2 = $ 2,000
For a total of $30,200 in deductions to income
In 2018 the same family of 4 will receive:
No personal exemptions
A standard deduction of = $ 24,000
Child Tax Credit of $ 2,000 for kids under 17 x 2 = $ 4,000
For a total of $ 28,000 in deductions to income
This reflects a loss in deductions from 2017 compared to 2018 of approx. $ 2,200
Naturally each taxpayer will have a different scenario - this was just to give you a quick idea
A plus for taxpayers with children under 17 is the child tax credit will double from $1,000 to $2,000 per child
Those over 65 will continue to see an added deduction of $1,300 per person for a married couple/$1,600 for single
There will no longer be casualty loss deductions allowed for personal losses due to fires, theft, etc.
Losses will be limited to only Presidentially declared disasters
The BIG tax cuts in 2018 we heard about were tax breaks/increase in your take home pay as follows:
Families earning less than $25,000 a year would receive an average tax cut of $60
Families making between $50,000 and $75,000 will get an average cut of $890
Families earning between $75,000-$150,000 we estimate will see a cut of $1,000-$5,000
Families making over $150,000 will see a cut of approx. $7,500
The top tax bracket current is 39.6% which will drop to 37%
The Corporate tax rate will drop from 35% to 20% which should be an incentive for struggling businesses
For small business owners reporting their corporate income on their personal returns will get a 20% tax cut
There will be a cut to the Estate Tax rates
There is no definite mention of the Healthcare Laws or subsidies at this time
However the penalty for not maintaining health insurance in 2019 will be eliminated
The rest of the cuts as of now are for Corporation, Estates and Small Business owners