Tax Updates and Information
The Tax Cuts and Jobs Act of 2017 ushered in a broad range of changes impacting virtually all American taxpayers. Along with rate adjustments across seven tax brackets, one of the biggest changes is the elimination of the personal exemption and the increase in the standard deduction, which has nearly doubled to $12,000 for single filers, $18,000 for heads of household, and $24,000 for married taxpayers filing jointly. The increase in the standard deduction also affects charitable tax deductions this year.
In addition, many deductions for taxpayers who itemize have been capped, such as the state and local tax (SALT) deduction; or eliminated altogether, such as miscellaneous itemized deductions subject to 2% of adjusted gross income (AGI) and the home equity loan interest deduction.
There’s no question that changes to the tax code can make tax and investment planning complex and confusing for taxpayers. We’ve updated our “2018 Income Tax Strategies” report to reflect the recent changes. To download a copy CLICK HERE.
If you have a question about how to integrate these strategies, we encourage you to schedule a tax-planning meeting to discuss how the new tax laws may impact your financial and investment strategies and what you can do today to make sure you pay no more in taxes than absolutely necessary. Click here to schedule a meeting online or call (830) 609-6986.*
*This article is designed to provide accurate and authoritative information on the subjects covered. It is not, however, intended to provide specific legal, tax, or other professional advice. For specific professional assistance, the services of an appropriate professional should be sought.
The views expressed represent the opinion of Christian Financial Advisors®. The views are subject to change and are not intended as a forecast or guarantee of future results. This material is for informational purposes only. It does not constitute investment advice and is not intended as an endorsement of any specific investment. Stated information is derived from proprietary and nonproprietary sources that have not been independently verified for accuracy or completeness. While Christian Financial Advisors® believes the information to be accurate and reliable, we do not claim or have responsibility for its completeness, accuracy, or reliability. Accordingly, such statements are inherently speculative as they are based on assumptions that may involve known and unknown risks and uncertainties. Actual results, performance or events may differ materially from those expressed or implied in such statements. Past performance is not indicative of future results. For any discussion of equity securities: Investing in equity securities involves risks, including the potential loss of principal. While equities may offer the potential for greater long-term growth than most debt securities, they generally have higher volatility. For any discussion of taxes: Christian Financial Advisors® does not provide tax advice and encourages you to seek guidance from a tax professional.