They say every cloud has a silver lining, and that may just be the case with the tax reform bill. Because even though the new tax reform changes went into effect at the beginning of 2018, you probably won’t see them all until you file your federal taxes in April of 2019, and some even later in 2020. The good news is that our team of certified tax preparers at Fiesta can help you make the most of the new tax reform, so stop by our location so we can help you MAXimize your tax refund. Here’s how the tax reform bill will likely impact you and your family.
- Higher child care tax credit. This increases by up to $1,000 for every child under the age of 17, which means that the amount you owe in taxes could go down by up to $1,000. Nada mal!
- Increase in standard deduction. The standard deduction is a set amount of money that people can automatically subtract from their taxes. The government sets the amount depending on whether you’re married or single, and your filing status. Basically, the standard deduction lowers how much you pay in taxes! Under the tax reform bill the amount of the standard deduction will go up to $12,000 for individuals, and to $24,000 for married couples who file their taxes together. This means that you could end up paying less in taxes!
- Limits to state and local tax deductions. If you deduct your state and local income or your property taxes, this amount will soon be limited to $10,000. Your Fiesta Certified Tax Preparer can help you determine if this applies to your situation, and when.
- Limits to mortgage interest deduction. Future home buyers will see their mortgage deductions limited to $750,000. So, when you and your family buy the home of your dreams, you will be able to deduct from your taxes the interest payments on a home loan of up to $750,000.
- Health care penalty eliminated. After December 31, 2018, the tax penalty for not having health insurance is gone!
When it comes to the new tax reform, you never know how it will affect your family budget, no matter what your vecino tells you. But one thing you can count on is our certified tax preparers at Fiesta to guide you through the tax process and help you get the best tax refund as quickly as possible. Stop by your nearest Fiesta location so we can help you with your taxes today. Can’t wait to see you!