The three BIG changes affecting your 2018 tax return
1 – Personal Exemptions
These are suspended and this may significantly increase taxable income for large families. Some of this increase may be mitigated by the changes to the standard deduction and child credit as well as lower tax rates.
2 – Standard Deductions
The new law nearly doubles the standard deductions so unless itemizing creates a larger total for you, tax and time savings from the standard may now be of benefit. Conversely, for those with many dependents or deductions that they used to itemize, a higher tax bill may result.
3 – Child Credit Enhancement
For each child under the age of 17 the new tax law doubles the credit to $2000. This credit reduces taxes in a more significant way than simply reducing the amount of income subject to tax.
We’re here to assist you in claiming all of the tax breaks that apply to your 2018 return and to work with you on tax-saving strategies going forward. Feel free to contact us at 772-231-6902 for an appointment.