Guest Blog: Tax Reform and Your Taxes

Guest Blog: Tax Reform and Your Taxes

How Will Tax Reform Affect Your Taxes This Year? 

The Tax Cuts and Jobs Act (TCJA) signed into law on December 22, 2017, has brought significant changes for individuals at the federal level. It is the largest piece of tax reform legislation in 30 years.

Major changes for individual taxpayers include:

  • Lowering individual income tax rates
     
  • Increasing the standard deduction and child tax credit
     
  • Repealing certain personal and dependent exemptions
     
  • Eliminating certain itemized deductions
     
  • A new $10,000 limit on the total tax deduction for state income taxes, sales and use taxes, personal and real property taxes combined
     
  • Changes in the limitations on tax deductions on mortgage interest
     

The majority of the tax law changes are in effect for the tax year that begins after January 1, 2018. (That's right now!). To prepare yourself for the new tax law changes—and to avoid any surprises when you file your 2018 tax returns—you should review the rules carefully now and determine how they will affect your 2018 tax situation.

Also, California residents should note that the state of California tax code will most like not conform to most of the federal changes, so prepare accordingly.

Find yourself a good tax preparer! For more information, you can email me — Bella Wang — or visit windes.com.

 

About the Author

Bella Wang, CPA, MST, is a Senior Manager of Tax & Accounting Services, a member of the board, and a mentor/trainer at the tax firm Windes. Her practice focuses on tax planning, consulting, and compliance for large- and mid-size domestic and international businesses and high-net-worth individuals. She also specializes in international taxes, consulting on a broad range of issues and helping clients understand the implications of tax policy developments.