The New Tax Law And What It Means Immediately For Most Taxpayers
U.S. Air Force photo/Janet Taylor-Birkey/Public Domain
Well here we are in a brand new year, with a new tax bill passed and the uncertainty of what it means looming in the mind of many taxpayers.
With the upcoming tax season getting ready to launch, I would like to assure you that there will be little to worry about this year.
The 2017 tax-filing season that ends on April 15, 2018, will be the last one under the old tax code. Things will be pretty much the same as they have been in the past. However, there are a couple of things you can do to maximize the benefits of the old tax code before the new goes into effect.
If you typically make and claim charitable deductions on your taxes, you may want to increase your contributions in 2017.
Next year will see a larger standard deduction required under the new tax law so many people are taking advantage of the current claim deductions.
Also, when filing your taxes for 2018, the new tax code imposes a $10,000 cap on property taxes.
This is why you are hearing about taxpayers rushing to prepay their property taxes. They want to deduct as much as they can before the new code imposes the new cap on state and local tax deductions. The tax codes differ from state to state and sometimes even from county to county.
Typically, as a homeowner, you receive a big deduction when you pay your taxes in November when you receive your tax bill. The discount gets smaller and smaller until the April deadline. If you pay in April, there is no discount. So, people are rushing to pay before the deadline since there won’t be an opportunity for a discount the next tax year.
Give us a call for help getting the greatest tax benefits when filing your 2017 taxes. If you haven’t filed your taxes in a few years, you’ll definitely need help and, you could be eligible for additional tax relief if you suffered losses from Hurricane Harvey, Irma or Maria.