Top 8 Ways Tax Reform May Affect You
by Susannah McQuitty
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Tax reform, as per the Tax Cuts and Jobs Act of 2017, is now officially in full swing—and what a crazy year to start! Between the government shutdown and the biggest tax overhaul in 30 years, you may be feeling a little overwhelmed.
Not to worry: Here are some of our best resources on tax reform to help you through!
How tax reform will affect Millennials
How tax reform will affect Baby Boomers
How tax reform affects Generation X
If you’re a part of Generation X, this one’s for you. Dive even deeper into tax reform for Gen X taxpayers in different walks of life with our infographic after you read about major changes on the blog.
How does tax reform affect health insurance penalties?
The penalty for not having minimum essential healthcare coverage—also referred to as the “shared responsibility payment” or “mandate”—was reduced to $0 by the Tax Cuts and Jobs Act starting in 2019. The key phrase there is starting in 2019; if you didn’t meet the Affordable Care Act (also known as the ACA or Obamacare) healthcare requirements in 2018, you may still be subject to a penalty.
You might not need to itemize deductions this year: here’s why
Saving the most money on your taxes with either the standard deduction or itemized deductions looks different for each individual: Homeowners usually have enough individual deductions to merit the extra work of itemizing deductions.
As of this year, however, even homeowners and other taxpayers with complicated deductions may be able to save on their taxes without having to itemize, all thanks to tax reform’s new standard deduction rates.
Tax reform for families
Families are going to see some big changes in the way their tax breaks are calculated and applied with the personal exemption gone, the standard deduction boosted, and the Child Tax Credit doubled. Let’s review how the new tax laws will impact you.
Alimony, dependents and tax reform—what divorced taxpayers need to know
Filing your taxes as a divorcee is pretty straightforward. For starters, no matter what time of year you got a divorce, you can file as single for the year; your taxes will be separate from your ex-spouse’s; and if you have any qualifying dependents, you can file as head of household (boosting your tax savings even more).
So what does tax reform throw into the mix? Will the Tax Cuts and Jobs Act of 2017 complicate things for divorcees? Read on to find out.
Small businesses and freelancers, meet the qualified business income (QBI) deduction
We can’t leave out our freelancers! There’s awesome news for anyone running their own business or doing work as an independent contractor: You’ll probably qualify for a 20% deduction just for filing a Schedule C. Catch up with the details on the blog.
We’ve got tax reform figured out
No matter how your tax situation has changed, 1040.com makes the process almost identical to previous years. You just answer some simple questions about your finances, and we’ll find all your tax savings in the background. Just another reason to file with 1040.com—so start your taxes today!
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