The Tax Cuts and Jobs Act: The Myths


       In the time before the Tax Cuts and Jobs Act (TCJA) was passed, many were unsure about what this major law would mean for them. It might be hard to believe, but it now has been in effect for 6 months. Now is a good time to discuss certain myths surrounding the TCJA. It’s better to know now than find out when it’s too late.

Filing a tax return will be easy. The goal was never to make it easier to file a Tax Return. In fact, as a direct result of passing this law, the IRS has set aside around $300 million dollars for new training, forms, and to upgrade their systems. However, it has given a 20% tax break to certain businesses, which will be much appreciated by small business owners.

Federal tax reform does not affect state taxes. In most cases, state income taxes are in some way based on the Federal tax code. Many Taxpayers are likely to see an increase in the state income taxes they are responsible to pay, even if they receive a tax break at the Federal level. Some states will see a big revenue increase. Now is the best time to see your Qualified Tax Professional, and map out the plan that is best for you to navigate the changes in the tax landscape.

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