As the new year approaches, it is important for taxpayers to understand the changes in tax laws that will affect them in the upcoming filing season. The Tax Cuts and Jobs Act, which was passed in 2017, brought about major changes to the tax code that will impact individual taxpayers and businesses alike. It is crucial for taxpayers to be aware of these changes in order to properly plan and minimize their tax liability.
One of the key changes introduced by the Tax Cuts and Jobs Act is the increase in the standard deduction. For the upcoming year, the standard deduction will be $12,550 for single filers and $25,100 for married couples filing jointly. This means that many taxpayers will no longer be able to itemize their deductions, as the standard deduction will be higher than the total amount of their itemized deductions. This change is likely to simplify the tax filing process for many taxpayers, but it is important to be aware of how it will impact your tax situation.
Another important change introduced by the Tax Cuts and Jobs Act is the elimination of personal exemptions. In the past, taxpayers could claim a personal exemption for themselves, their spouse, and any dependents. However, under the new tax laws, these exemptions have been eliminated. This means that taxpayers will no longer be able to reduce their taxable income by claiming personal exemptions, which could result in a higher tax bill for some taxpayers.
Additionally, the Tax Cuts and Jobs Act made changes to the tax rates and brackets. For the upcoming year, the tax rates will range from 10% to 37%, depending on your income level. It is important to be aware of these changes in order to understand how they will impact your tax liability. Taxpayers should also be aware of changes to various tax credits and deductions, such as the Child Tax Credit and the Mortgage Interest Deduction.
Given the complexity of the new tax laws, many taxpayers may benefit from seeking professional assistance when preparing their tax returns. Tax return services Aragon can help taxpayers navigate the changes in the tax code and ensure that they are taking advantage of all available deductions and credits. By working with a tax professional, taxpayers can minimize their tax liability and avoid costly mistakes on their tax returns.
In conclusion, it is important for taxpayers to stay informed about the changes in tax laws for the upcoming year. The Tax Cuts and Jobs Act introduced major changes to the tax code that will impact individual taxpayers and businesses. By understanding these changes and seeking professional assistance when necessary, taxpayers can ensure that they are in compliance with the law and minimize their tax liability. Consider reaching out to tax return services Aragon for help with your tax return preparation this year.
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https://www.aragontaxreturnservices.com/
Denver, United States
Are you ready to breathe easy this tax season? Look no further than Aragon Tax Return Services. Our expert team is here to help you maximize your return and minimize your stress. Stay tuned for our easy-to-use tools and personalized guidance to help you take control of your finances. Get ready to file with confidence at Aragon Tax Return Services.
