Major Tax Changes in 2018

Tax season is quickly approaching and we understand that for many it can be overwhelming and intimidating. At National Business Concepts, Inc. we also know that if you do not know your numbers, you can’t grow your numbers. Our goal is to keep you informed, and with all of the updates that have been made in 2018, it is so important to understand these changes – and how they might affect you.

In case you missed it, 2018 saw a Tax Reform that greatly impacted income tax rates and tax brackets here is what you should know:

• The 1040 EZ and 1040A forms have been phased out. From now on, taxpayers will file on Form 1040.

• Taxpayers have the possibility of deducting up to 20% of qualified business income. Additionally, 20% of qualified real estate investment trust dividends, and qualified publicly traded partnership income.

• For self-employed and small business owners, this 20% deduction is additional – and over and above the standard deductions.

• A reduction in the top corporate rate to 21%.

• A limit on expensing of interest from borrowing, allowing small business to expense almost double of what was able to be expensed in the 2017 Section 179.

• Reform eliminates corporate alternative minimum tax.

• 2018 child tax credit has increased to $2,000, up $1,400 from 2017. If married and filing jointly, the credit begins at a gross income of $200,000 or $400,000.

• Eliminated tax penalty for not having health insurance after December 31, 2018.

• In 2018, you can deduct medical expenses that are more than 7.5% of your adjusted gross income.

• Lower tax rates and changed income ranges. The 2017 brackets were, 10%, 15%, 28%, 33%, 35% and 39.6%. In 2018 they will be 10%, 12%, 24%, 32%, 35% and 37%.

• Child tax credit increase.For 2018 the child tax credit is increased to $2,000 (from $1,400 in 2017). The phase-out for the credit begins at a

This seems like a lot, don’t worry – National Business Concepts, Inc. is here to help. We are always up-to-date with the latest tax laws, and want you to remain informed so you are too. Follow us for breaking news, industry updates and all information you should know for the highest return on investment.