Why you need a tax accountant taxes this year:
Calculating and paying your taxes is always a complex task, and not everyone is aware of its rules and codes.
Last year, there seen some amendments in the American tax code that will affect the Americans in filing their yearly taxes.
Therefore, hiring some professional tax accountant will be beneficial because it will take over the burden and all the procedure will done successfully without interruptions and objections.
This article will elaborate on the problems that come in the way while paying off taxes and why you need a tax accountant.
Tax account for Medical deductions
As we all agreed that quality medical assistance is necessary to make life quality better. In previous tax codes, one can deduct the medical expenses that exceed from 7.5 per cent of their gross income.
This applies only if you or your spouse is 65 or more. However, in the last year redefined codes of taxes, the age limit is taken off.
Now, no matter what your age is, one can deduct his dental and medical expenses if exceed from 7.5 percent of the total gross income.
As a result, anyone can save more from their unreimbursed medical expenses.
Tax account for Child tax credits:
Having a baby is a huge responsibility for parents because they have to face more challenges to provide quality life to their toddlers and teens.
The question may come to your mind is how the new codes and act will influence child tax credits.
As stated by magnify money, the previous child tax credit provides $1000 to qualifying child all under the age of 17.
Besides, this credit starts to phase out when the income rose. The limit was $75,000 for single filers, while $110000 for joint filers.
In contrast, the new amendments change the whole scenario. Until 2025, each qualifying child will receive $20,000 as tax credits.
You may want to know about phase out. The new tax code has a higher phase out as well. It is $200,000 for single filers and $400,000 for joint filers.
Not just that, the new law adds up an amount of $500 non-refundable for all dependents besides qualifying child.
- Mortgage deductions ( search now ) :
Owing a home need significant investment, so people also look for mortgage deductions in their taxes.
According to IRS and in the light of new rules, the interest paid on equity loans on building or buying a home will be deducted from the taxes.
In the previous loan, the deductible amount is on $1 million, but in new codes, it altered up to $750,000.
- Other standard deductions:
Now it is easy for everyone to decide his or her deductions. The change in standard deductions will ultimately leave more money in one’s pocket.
Remember, that everyone has its own expenses, circumstances, and tax amount, so it is better to choose your strategy carefully.
Things to keep in mind are that Standard deductions vary from single filers to married and rises.
Standard deductions for households also rise from $9,350 to $18,000.
To get all the answers of your question regarding new tax order, a tax accountant can play an important role. They understand the changes, how to navigate things.