Here are three new tax laws that will likely affect you.
Higher Standard Deduction - Most people do the “short form” and therefore use the standard deduction available to them, which is the amount that is taken away from your income and that you are not taxed on. For the taxes prepared this year, the deduction is higher as a way to keep up with inflation. For example, if your Single, then the standard deduction is $12,950 (up $400), Head of Household (Single with a dependent), it’s $19,400 (up 600) and Married Filing Jointly, it's $25,900 (up $800). Next year they will rise again.
Smaller Child Tax Credit (CTC) - Many taxpayers will see a smaller refund this year because the CTC was reduced from $3,600 to $2,000.
No More “Short Form” Charitable Deductions - IRS is no longer allowing people that do the 'short form’ to also claim cash charitable deductions of up to $600. It’s available only for those who itemized their deduction and do the ‘long form’.
We are now accepting tax preparation appointments. If interested, please go to this LINK to make your appointment.