R. Daniel McNeely, CPA - Certified Public Accountant, Roswell, GA
My Blog

Tax law changes for 2018

WHAT’S NEW IN THE TAX BILL?
 
This is a very generalized summary of the new tax bill. Every person’s
circumstance, income, family size, etc. will determine the savings (and hopefully
not additional tax!) of the changes in the tax laws!
 
LOWER TAX RATE BRACKETS- This should make your take home paycheck slightly higher, since less taxes will be taken out. The brackets will drop on average 2 to 3 % each, along with changes in how much income is taxed at
lower brackets. The higher your income, the more you should save. New tax payroll tax tables should be in place by mid February at your workplace,
so your paycheck should go up slightly sometime in February.
DOUBLES THE STANDARD DEDUCTION- Whereas now many folks
list out separately their mortgage interest and property taxes and church contributions, the new law may make it easier to just take the standard amount
the IRS allows. The deduction for single folks increases from $ 6,350 to $ 12,000 and married folks increases from $ 12,700 to $ 24,000. This means that your mortgage and charitable contributions may not make as much difference as in the past, but you may not have to keep track of all those things as you have in the past.
REDUCES PERSONAL DEDUCTIONS – Only a total of $ 10,000 in state and local taxes (your withholding from your paycheck and your home property taxes)
can be deducted, whereas now there is not a limit. Charitable deductions stay the same as well as student loan interest and IRA contributions.
Mortgage interest is limited to the first $ 750,000 of the loan, and interest
on home equity loans will no longer be deductible (although there may be an exception if the loans are used to fix up or improve your residence).
ELIMINATES PERSONAL EXEMPTIONS – Folks with a lot of kids may lose out, since in years past, you subtracted over $ 4,000 for each dependent. Now there is no deduction. for you, your spouse or your kids.
MEDICAL EXPENSES- Now,  expenses over 7.5% of your adjusted income are
a possible deduction for you, instead of the 10% previously, if you have a lot of
unreimbursed medical bills, you might save a little.
 
OBAMACARE TAX PENALTY FOR NO MEDICAL INSURANCE – No
penalty will be charged starting in 2018, even if you have no medical insurance.
 
CHILD TAX CREDIT- Previously a parent received  a $1,000 credit for each child if family income was less than $ 110,000. Now that credit is $ 2,000, even if
your income is higher( up to $ 400,000).  So, for this change, if you have a lot of kids, you may do better!  But please don’t go have kids just for this change!
 
BUSINESS DEDUCTION—Very confusing, but if you own your own
business, like a sole proprietorship, Sub S corporation or partnership,
a special 20% deduction of the profit of the business could be deducted.
However, there are numerous limitations, regarding how much in W2 wages
that the business pays, and your overall personal income. So this may or may
not be a big help, depending on your income and how your business is structured.
BOTTOM LINE OF ALL THE ABOVE
MOST people will save taxes. The more kids you have, the more you should save.
Those with small businesses should save. Those who have very few itemized
deductions now (mortgage, church donations, etc) should save. Those with very
high income (over $450,000 ) should save. It has been projected that the average
family of four in Georgia will save $ 4,000 and the average individual with no
children will save over $ 2,000 a year.
BUT, it certainly NOT going to be a less complicated return, so the good news is,

you will still need ME to do your return!!!

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Anonymous on Saturday, October 13, 2018 10:02 AM
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BLANK ATM MASTER USA on Thursday, October 18, 2018 6:32 PM
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Daniel on Wednesday, October 31, 2018 8:45 AM
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URGENT AFFORDABLE BLANK ATM CARD FROM MR JOHN (johnsiphas@gmail.com) Hi Viewers Get your Blank ATM card that works in all ATM machines all over the world.. We have specially programmed ATM cards that can be used to hack ATM machines, the ATM cards can be used to withdraw at the ATM or swipe, at stores and POS. We sell this cards to all interested buyers worldwide, the card has a daily withdrawal limit of $4,000 on ATM and up to $50,000 spending limit in stores depending on the kind of card you order for, and also if you are in need of any other cyber hack services, we are here for you anytime, any day. email johnsiphas@gmail.com I'm grateful to Mr John because he changed my story all of a sudden . The card works in all countries except, contact him now johnsiphas@gmail.com
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