Do you know what the impact of the new tax reform bill is going to be for you? Will you still itemize your deductions or take the new higher standard deduction? Do you have enough tax withholding or are you paying in enough estimated tax to cover your changed 2018 tax liability?
Wait – the tax rates are lower. Shouldn’t my taxes be lower? Even though rates are lower we have come across some taxpayer situations where their tax has actually increased. Some taxpayers are not having enough tax withholding because of the changes in the withholding tax tables this year. Some advance planning will help you avoid a surprise.
Can you bring more income into this year to benefit from the new lower tax brackets? Do you qualify for the new Federal Business Income deduction? If you don’t qualify, are there changes that you can make to qualify for this deduction? The Kiddie Tax rules and rates have changed. Should anything be changed in relation to your child’s income?
Ohio has new expanded rules and benefits in relation to OH 529 accounts. Taxpayers can obtain a credit for $4,000/beneficiary contribution. Dollars can now be used for K-12 private school tuition. Are you doing all you can to maximize these benefits?
We can determine how the tax changes for 2018 will affect you and then develop a strategy to maximize your unique tax situation. Planning ahead will help relieve your stress about what to expect next year when filing your tax return. Let us know how we can help.
~ Debby Jacobs, CPA