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The Child Tax Credit Changes for Your 2018 Taxes!

child tax credit 2018

Children are expensive, but luckily they can give you a break — a tax break of course.

With all of the changes that the 2018 tax year brings us, the Child Tax Credit (CTC) is one of them. Whether you’re a parent, grandparent, or guardian, when tax time comes around you can claim your dependents to your advantage.

Here’s what you need to know for this tax season.

Who qualifies for the CTC?

Unfortunately, you can’t just receive the CTC for just having a dependent. You have to meet certain requirements for your dependent to be a “qualifying child.” These are the following conditions they will need to meet: Continue reading “The Child Tax Credit Changes for Your 2018 Taxes!”

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How the Tax Cuts and Jobs Act Affects Businesses

business taxes

The upcoming tax year brings in a lot of changes for self-employed and business taxpayers.

Taxpayers with sole proprietorship, partnerships, trusts, and S corporations will face some difficulties when they’re ready to file for the 2019 tax season because of the Tax Cuts and Jobs Act (TCJA).

Read below for the changes you need to know for your business taxes.

Here’s what qualifies as business income.

In order to have qualified business income (QBI), it must be domestic income from a trade or business. Your qualified business income (QBI) is calculated into a net amount and does not include employee wages, capital gain, interest and dividend income.

The maximum deduction increases.

Prior to the TCJA, you could deduct up to $500,000 for any section 179 property. It has now increased to $1 million. The phase-out threshold also increases from $2 million to $2.5 million. (Subject to change due to inflation.)

The new 20% deduction.

Continue reading “How the Tax Cuts and Jobs Act Affects Businesses”

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Tax Reform: Tax Tips for Lowering Rates for 2018 Taxes!

tax reform
Be ready for the new tax reform.

Get your to do list out and take some action to reduce your 2018 taxes now! Although taxpayers might be hurriedly finishing their 2017 tax returns before the e-file deadline, some tax deductions will not be there for the next tax season due to the Tax Cuts and Jobs Act. (TCJA) Ultimately, the design of the new tax reform is to lower taxes for individuals of all income groups until 2025. Bear in mind that along with that idea, many individuals who itemize their deductions are worried about the tax turmoil they’ll face when filing with each capped or eliminated deduction.

Did you know that can take steps in 2018 to decrease your taxes for next tax season? Here’s a few tax tips for you.

Rack up your medical receipts.

Continue reading “Tax Reform: Tax Tips for Lowering Rates for 2018 Taxes!”