What Tax Reform Will Mean for Your Family

tax-reform

The talking heads on cable news have gone into overdrive in recent months, debating the impact of congress’s promised tax reform on American families. Their view of its impact ranges from flawless to apocalyptic, their confidence ranging from speculation to declaration.

It’s no wonder so many Americans feel left in the dark about the true impact of the changes that will affect their pocket books in real and tangible ways. While the changes are only half-baked, a number of the most significant changes are now coming into view. And some of them could have real impact on families. Here’s what we know so far:

 

Fewer Tax Brackets

The standard deduction (the amount middle-income earners are able to subtract from their income without itemizing deductible expenses) is set to double. Additionally, the child tax credit is slated to increase. The amount is uncertain, but many are expecting an additional $500 per child in tax relief.

Lower Taxes for Small Businesses

The top percentage paid by small and family-owned business would cap out at 25% under the new plan, a sharp reduction for select small businesses in higher tax brackets. Run a successful small business with your family? You may be in luck.

Mortgage Interest Safe? Other Loopholes in Limbo.

One of the largest tax deductions for homeowners—the mortgage interest deduction—doesn’t appear to be going away anytime soon, while a number of other deductions are on the chopping block. One big one: the state and local tax deduction. It could be eliminated, but no one knows for sure. Some lawmakers are arguing that increasing the standard deduction makes it unnecessary, while others see it as a major source of savings for middle class families. Meanwhile, good news for big givers: the charitable contribution deduction will remain.

Corporate Incentives

Other changes set to go into effect will have little impact on the average American family, but will certainly earn their fair share of debate on Capitol Hill. They include a decrease in the corporate tax rate, a change in the way business are able to write off large capital expenses, and a temporary low tax to encourage corporations to bring offshored funds back to the States.

Whatever Comes, TaxSlayer Has Your Back

No matter what changes this tax season brings, there’s one way to guarantee that you’ll be in the know when it comes time to file. Its name? TaxSlayer. You can rest assured that we’ll be keeping tabs on every change to the tax code and optimizing our tools to simplify your filing process.

P.S.

One thing that won’t change? Our TaxSlayer Maximum Refund Guarantee. It’s just one of the ways we take tax season off of your shoulders. So what are you waiting for? Get a jump on this year’s taxes for free. We’ll even save your work until you’re ready to finish the job.

See your tax refund estimate now >>