3 Things You Should Know When Filing Your Taxes This Year

Yeah, filing taxes is not most people’s exciting moments in life, unless you are an accountant. Filing taxes is something that has to be done. The nice thing about filing taxes is that you feel great when it is done and usually you get a nice lump sum of money back when you file.

Here are 3 tax laws that will help in understanding filing taxes this year. If you have an accountant do your taxes for you, great. You should, however, be aware of the tax law and keep up with the law of taxes no matter what.

1. Tax Rates Are Reduced

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Thankfully, tax rates have been reduced. As with anything though, when you take away from one thing that is important and makes money, somewhere else that money is put back. This is, of course, part of the government and life. Yes, the tax rate has been reduced. Here are the new reductions to the tax rate.

Single

  • Head of household
  • Married filing jointly
  • Married filing separately

10%

  • Up to $9,525
  • Up to $13,600
  • Up to $19,050
  • Up to $9,525

12%

  • $9,526 to $38,700
  • $13,601 to $51,800
  • $19,051 to $77,400
  • $9,526 to $38,700

22%

  • $38,701 to $82,500
  • $51,801 to $82,500
  • $77,401 to $165,000
  • $38,701 to $82,500

24%

  • $82,501 to $157,500
  • $82,501 to $157,500
  • $165,001 to $315,000
  • $82,501 to $157,500

32%

  • $157,501 to $200,000
  • $157,501 to $200,000
  • $315,001 to $400,000
  • $157,501 to $200,000

35%

  • $200,001 to $500,000
  • $200,001 to $500,000
  • $400,001 to $600,000
  • $200,001 to $300,000

37%

  • $500,001 or more
  • $500,001 or more
  • $600,001 or more
  • $300,001 or more

Hopefully, you will find solace in the fact that the tax rate has been reduced. Hopefully, you will be able to save money overall in your taxes depending on how the other new tax laws affect you. Consult with a tax accountant if you have any questions and need help with filing your taxes. The cost of an accountant is usually less than the money you might pay out to the government, because you do not understand the United States tax law.

 

2. The Deduction For Interest On Home Equity Borrowing Is Gone

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Many people have counted on the deduction of the interest from their home loan with their taxes. Unfortunately, writing off home loan interest is no longer something available to taxpayers. There are other incentives and write-offs for the American taxpaying community. This may come as a surprise to some people but there is hope and other incentives have been put in place to make up for this.

 

3. The Deduction For Personal Exemptions Is Gone

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The deduction for personal exemption is gone, but it is recovered in the doubling of the child tax credit. It also allows people who make up to 400,000 as opposed to $200,000 to use this credit. So having a child 17 and under is a good thing. You are allowed to have a deduction of $2000 as opposed to last years $1000 dollars. And as mentioned this available to more people this year than last year.

No matter what your situation is this tax year there have been significant changes to help make your tax refund bigger. Al this depends on all aspects of your tax return, but the lower tax rate is a welcome situation for some and the other new tax laws may work or not work for everyone. The tax laws put in place are to help the country as a whole succeed in this competitive world. The new tax laws are also made to try to help as many Americans as they can to be able to live the American dream in comfort.

 

Author Bio –

AdityaAditya has been working as a digital marketing expert and consultant for over 10 years. He has seen the world of internet marketing evolve from its infancy and has a strong grip on techniques and concepts that help him provide the strongest solutions that provide measurable results. He lives & breathes digital marketing and likes to research and stay up to date on the latest developments and techniques which makes him one of the best marketers around.  Besides marketing, Adi likes to travel and spend quality time with friends and families and participates actively in adventure sports.

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