Are You Ready for Tax Reform?
Tax reform represents the biggest changes to the tax code in about 30 years, affecting almost all taxpayers. It’s likely you’ve already noticed some changes.
Still, you’re probably wondering how exactly tax reform affects you.
A Jackson Hewitt survey conducted over two days in April showed about 72% of 1,229 respondents were unfamiliar with the new tax law, Rather than risking a surprise come tax time, it’s a good idea to find out now how these changes affect you.
Here’s what you need to know about tax reform right now:
- Your take-home probably changed, even slightly.
- You might need to see if you’re withholding the right amount for taxes.
- Your ability to itemize deductions and write off job-related expenses might change.
- Big changes to the tax laws for large and small businesses.
You may be impacted most if you:
- Are in a dual-income family
- Work two or more jobs
- Work seasonally
- Are a parent/guardian who claims credits like the Child Tax Credit
- Have dependents, including children ages 17 and older
- Have itemized deductions
- Have a high income
- Have a complex tax return
- Are self-employed, have a side job, or work in the gig economy
What can you do to make sure you’re prepared for how tax reform will affect you?
- Get a midyear checkup – Visit a trusted tax professional to see how you’re affected
- Update your withholdings – If you’re not withholding enough, you could end up owing the IRS money. If you’re withholding too much, you could be giving the government more money than necessary.
- Pay quarterly or estimated taxes if you’re self-employed or a small business owner – Avoid any unpleasant surprises when filing your taxes next year.
- Take advantage of opportunities to check your tax status – A Tax Pro can tell you if you’re withholding too much from your paycheck, or if you need to take additional steps to reduce your tax burden on your next return.
Still have questions?
Talk to a Tax Pro to find out how the changes will affect you, your family, and your business or work-related tax liability. If you have questions or concerns, make an appointment with your local Tax Pro.