The tax reform legislation passed by Congress significantly changes the landscape for individuals effective January 1, 2018 and for several years thereafter. For many taxpayers, the changes made by the legislation present many tax planning challenges and opportunities.
While the tax rates have been lowered and the brackets expanded, the exemption deduction has been eliminated and the State and Local tax deduction has been limited to $10,000. These changes will also affect the taxes being withheld on your paycheck. If you are not having enough from your paycheck withheld, you may end up owing more on your taxes.
Please contact BWTP at 314-576-1350 or Justin Work, CPA at email@example.com if you would like to determine if your withholdings are adequate in light of the many changes brought about in the Tax Cuts and Jobs Act.