Well the smoke has cleared away and we have a new tax bill. In my opinion, I hope they continue to work on it because on the surface only single low income people with dependents 16 and under and married couples with no mortgage and children 16 and under will benefit the most from the 2018 tax bill. The Child Tax Credit will increase to $2000 per child, but there is a $1,400 limitation on the refundable side of it.
Well the smoke has cleared away and we have a new tax bill. In my opinion, I hope they continue to work on it because on the surface only single low income people with dependents 16 and under and married couples with no mortgage and children 16 and under will benefit the most from the 2018 tax bill. The Child Tax Credit will increase to $2000 per child, but there is a $1,400 limitation on the refundable side of it.
The standard deduction is going from $12,000 to $24,000 for married filing joint. So according to Duncan Hunter on a tv program the other day, most taxpayers will receive about $2,400 in an additional refund for 2018. The exemption credit of $4000 per dependent has been eliminated. The unreimbursed employee expenses have been eliminated. Tax preparer fees are no longer deductible. There will be a cap on state taxes withheld to $10,000. Mortgages loans up to $750,000 can still deduct the interest. And charitable deductions can still be deducted. The key player will be how it all comes out against the higher standard deduction. And effective in February there will be a lowering of the payroll tax rate so it should put more money in all taxpayer accounts.
For this year, most of the same rules apply. We will be able to e-file as of Jan. 29. There is still the slowdown of the Earned Income Tax Credit, Child Tax Credit, & American Opportunities Tax Credit, refunds like last year so these refunds will start processing Feb. 15.
