Tax season seems to sneak up on us each spring, making the first few months of the year frantic as businesses attempt to scrounge for all their receipts and invoices. Taking the extra steps throughout the year to ensure you’re prepared for the season can make a significant difference.
According to TurboTax, changes under the new tax reform law have been implemented. There are a few crucial changes businesses should prepare for when the time comes again to meet with their tax professional and file.
What do these new changes involve?
Lower tax rates
Since the tax rates have lowered, more money will be seen in your paychecks throughout the year. These reductions range from 1 – 3% for most taxpayers.
Elimination of personal and dependent exemptions
For some families, this exemption guaranteed certain write-offs throughout the year that will now be drastically reduced.
Increase in the Child Tax Credit
The previous exemption might be eliminated, but the Child Tax Credit has increased, and more people will be eligible if their child is under 17 years of age.
Changes for homeowners
There will be fewer tax deductions in the future. Existing homeowners will see less, and future homeowners need to research significantly before making a decision.
Elimination of tax deductions
A few other popular tax breaks will be cut starting next year. These include job search expenses, unreimbursed work expenses, investment expenses, and tax preparation fees.
What should you do?
TurboTax had a few suggestions on how to start planning now.
Adjust your withholding allowances
See where you stand
Reduce your taxable income
Another helpful suggestion would be to seek some help from a professional. Learning about all of these new tax changes and implementing them can be hard work. It’s difficult to know if you’re on the right track or not and working with an expert can help.
For more information on taxes and financial advice, contact us and check out our services. We hope to find something that benefits you.