Tax Reform 101: 5 Things To Know
With so many changes under the new tax reform law, Avestar Credit Union wanted to break down five big changes that may affect you this tax season.
Lower tax rates, more money. One of the biggest changes is the reduced tax rates, about 1 – 3% for the majority of taxpayers.
Elimination of personal and dependent exemptions. Personal and dependent exemptions of $4,050 were eliminated. This can mean a big reduction in the number of write-offs you once had.
Increase in the Child Tax Credit. The new tax reform law increased the Child Tax Credit from $1,000 to $2,000 per child and it raises the income threshold, which means more people could be eligible for the credit.
Changes if you're a homeowner. The new law limits the amount of state and local property, income, and sales taxes that can be deducted to $10,000.
Elimination of tax deductions. The new tax reform law eliminated several popular tax breaks starting in tax year 2018 (the one you file in 2019) like miscellaneous itemized deductions.
Don't worry, TurboTax Has You Covered
This tax season TurboTax will be up to date on all the latest tax law changes so you can file your taxes with complete confidence. As a credit union member, you are eligible to save up to $15 on TurboTax federal products. Click here to access TurboTax and your savings!