Learn more about the 2018 Tax Plan
Undoubtedly, you’ve heard about the new 2018 tax reform. An overhaul of this size is bound to generate many questions and uncertainties about your 2018 filing. We’ve compiled a list that will help you identify the changes that may affect you. Use this list as a reference, and be sure to ask your CPA before making any changes. Don’t have a CPA? We are happy to help by making a recommendation.
This is part one of a two part series.
1. You can now use funds from your 529 plan to pay for K-12 tuition up to $10K each year
For South Carolina residents this is a benefit because you can deduct your Future Scholar 529 plan contributions from your SC state taxes. If you live outside of South Carolina, check your state tax laws to determine which deductions are available to you in your state.
2. The tax brackets have changed this year
Depending on your tax bracket it may be beneficial to update your W-4 withholdings. Use the withholding calculator on the IRS website to determine your ideal withholding.
The folks over at The Motley Fool have done the math and put together some useful charts to help you make sense of the new tax brackets. We have included their married filing jointly chart here, and you can click the graphic to enlarge. You can click through to The Motley Fool site to view other filing scenarios, and to find a link to the 2017 brackets.
3. The standard deduction is doubling under the new tax laws
This means some people will no longer have to itemize. Even if you no longer need to itemize it is still important that you save your receipts.
Don’t have a CPA?
We are happy to help by making a recommendation.
*FinTrust Investment Advisors, LLC and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.