The Tax Cuts and Jobs Act made major changes to the tax law and those changes will begin to take affect in 2018. Some of the major changes affect the current withholding rates. Some of those changes are as follows:
1) Reduced tax rates.
2) Elimination of personal exemptions.
3) Increased standard deductions: $12,000 for singles, $18,000 for heads of households and $24,000 for married couples filing jointly.
4) Increased child tax credit: $2,000 per qualifying child and a new $500 credit for other qualifying dependents.
5) Changes to itemized deductions.
There are many more changes in store for both individuals and businesses alike.
Please contact David Hernandez, CPA, PA at 305-982-8069 or via email at David@Dhernandezcpa.com for more information.