What Does the New Tax Law Mean for You?

If you’ve been paying attention to news over the last several months, you have probably caught some of the headlines having to do with the new tax bill that has been passed into law. With so much coverage of the new tax bill, both negative and positive, it’s challenging to really get to the bottom of what the tax law means for you and your family. Can you expect a tax cut? How significant are the savings that you’ll be able to enjoy when you file your 2017 taxes?

Even though the answer varies depending on your income and a number of other specific factors, the good news is that most Americans will see a tax cut when filing their taxes this year. To find out exactly how much of a cut you can expect, it’s important to consider the specifics of this new tax bill and how it affects people of different tax brackets.

Some basics of the tax bill

To get to the bottom of how your taxes will be affected by the new tax bill, you will need to consider a few key factors—your annual earnings, the state you live in, the itemization of your deductions and your filing status. You should keep in mind that these individual tax cuts are not permanent facets of the tax code and will be phased out in 2025, while corporate tax cuts will remain in place indefinitely.

Taxpayers who may benefit the most significantly from the new tax bill are couples who have children and live in states with low taxes. The majority of Americans will see their taxes cut down, and even though the provision to cut income tax is set to expire, it is expected that new legislation will be passed to make these cuts permanent. To maximize your deductions and tax exemptions, it’s a good idea to get tax assistance in Des Moines, IA from a professional preparer who can walk you through the filing process.

Brackets with tax increases

If you live in a state with high taxes and you are a high-income earner, you may be able to expect an increase in your taxes this year. This is because the deduction for state and local income as well as property taxes has been reduced to a $10,000 combined maximum. Another group that is expected to see a tax increase is low and middle-income earners who usually take large deductions. Only about 20 percent of filers who are low to middle income earners usually itemize their deductions, and they will likely have to pay more in taxes because the new tax bill removes personal and dependent exemptions.

Get tax assistance in Des Moines, IA

Changes to the tax code are almost always met with some degree of confusion by taxpayers. The good news is that you don’t have to tackle your taxes alone. Instead, get reliable tax assistance in Des Moines, IA from Accounting & Tax Professionals, PLC. We can provide you with everything from payroll services to personal tax assistance. Contact us today for more information.

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