ALEXANDRIA (KALB) - The new tax laws which took effect in 2018 will mean changes to filing in 2019.
Filling out tax forms, Photo Date: 2/9/2017 / Photo: U.S. Air Force / (MGN)
“There are going to be some gainers and some losers but overall there will be gainers with the new tax law," said Boyle Henderson Jr. of Daenen Henderson & Company LLC.
To highlight the largest changes, there are several opportunities for savings. The child income tax credit has doubled to $2,000 among other modifications intended to help more taxpayers benefit from the credit.
Individual income tax rates have also dropped in some brackets. "So there's a compression down of the tax rates so that's going to help everybody just by default," said Henderson. However, the personal exemption of $4,500 has been eliminated.
Many families will opt for the standard deduction this filing period; it has doubled. It also means a more convenient filing period in most cases. "You don't have to pull out all of those canceled checks or those or those bills and go online and look up things," said Henderson.
The Trump Administration also hoped for a simpler filing process for Americans down to the tax filing forms. "The forms are simpler for instance there's no line for personal exemptions. The actual 1040 has shrunk in size," said Henderson.
Regardless of if residents will be passing forms to a preparer or personally using tax software, this tax season should be less painful for many people.