Your Taxes in 2018

Your Taxes in 2018 from North Carolina Lifestyle Blogger Adventures of Frugal Mom

What do you think about at the beginning of each year? There are plenty of people focused on getting fresh starts, maybe by starting new workout regimens or something. There are also plenty of us who start thinking–and in some cases worrying–about our tax return. There was so much talk about tax reform at the end of 2017, and Congress ended up passing a major tax bill at the last possible second, after rewriting it up until the very last moments. That’s got a lot of people wondering what will be different about their taxes in 2018.

What does and doesn’t change

First of all, you should know that the taxes you file in early 2018 for the year 2017 aren’t going to be affected by the tax law. These are changes that will impact the money you make in 2018, but they don’t matter at all when it comes to the tax return you’re going to prepare in the first few months of this year. But what’s going to change about 2018? Well, people are still figuring that out, unfortunately. The bill was slapped together pretty hastily, and while a lot of corporations are pretty happy with it, a lot of middle-class people have questions. These questions are going to take a while to answer in some cases.

It is a safe bet that people in states with higher tax burdens will generally feel the pain more than people in states with lower taxes. That may very well have been by design, as the bill was passed with only Republican votes, and many of the higher-taxed states tend to vote for Democrats. Under the terms of the new bill, there’s a $10,000 maximum for all state and local tax deductions. Blue states like California and New York are still figuring out if there’s any way they can reduce the pain that will be felt by state residents when they file taxes in 2019. So stay tuned and think about hiring a tax expert, especially if you’re an expensive, highly taxed area. If you’re in a place like New York City, a Long Island tax attorney or a Manhattan tax attorney could be highly useful. It’s true that many tax accountants and attorneys are still figuring out the full implications of the law, but this is their job. They do stuff like this every day. This particular bill may provide a special challenge, but it’s nothing a good tax expert can’t handle.

Beyond 2018

Most people will see at least a slight tax cut in 2018; that’s by design. But in a few years, pretty much all the benefits will be going toward the richest people in America. Polls indicate that the tax bill isn’t very popular at all right now; we’ll see if that changes in time. But whether you’re happy or unhappy with the tax bill, don’t let it keep you from living your life. Yes, the bill reduces the amount of mortgage interest you can deduct from your taxes, but if you’ve been planning to change your housing situation, don’t let that stop you. It’s just something to keep in mind regardless of if you’re building a house in West Springfield, Massachusetts, or buying a house in Springfield, Illinois. There will also be midterm elections in 2018, giving voters the chance to voice either their support or disapproval of the tax bill at the ballot box. As we saw in 2016, one election can change everything.

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