Who Tax Reform 2018 Benefits, And How Will It Affect YOU?
Whether you like U.S. President Donald Trump and his policies or not, we have to give him credit for the tax reform 2018.
If you cut through the fat layers of politicized and anti-Trump theories surrounding the largest piece of tax reform legislation in more than three decades, we – residents of Fort Lauderdale – get a pretty good deal.
Our tax lawyers here at Zuckerman Law have reviewed how the new reform of the U.S. federal tax system, signed by President Trump late last year, will bring tremendous tax cuts for Fort Lauderdale residents, families and business owners.
Who tax reform benefits? Employers and employees
Most workers could see changes to paychecks as soon as this month, when the IRS will officially unroll the changes from the Tax Cuts and Jobs Act. For now, the IRS has instructed American business owners to use the 2017 tax withholding tables, but here at Zuckerman Law, we can help you incorporate the changes with new 2018 tables.
Most employees are expected to see larger paychecks thanks to the tax reform, which could have a noticeable impact on their household budgets. After the dust has settled and our Fort Lauderdale tax lawyer Ira Zuckerman had a chance to sit down and calmly review the tax reform, he learned how you might benefit from the new legislation.
How tax reform helps middle class
A single worker – male or female – earning the median wage of $50,000 per year will expect up to $90 increase in the monthly paycheck. That’s an additional up to $1,080 in take-home income every year.
A married couple who has three children (or more) and the median age of $75,000 in household income can expect up to $150 increase in the monthly paychecks, which translates to an additional nearly $2,000 income per year.
“How did the Trump administration pull this off?” you may wonder. Our best tax lawyers in Fort Lauderdale explain that the primary source of higher yearly income will come from the tax reform’s lower rates and higher child tax credit. Well, what does it mean?
Employers will withhold less of your wages
Under the new tax reform, the IRS will instruct employers in Florida and all across the country to withhold less of employees’ wages due to the legislation’s lowered marginal tax rates.
Confused? Well, it’s pretty simple. Let’s say your income was previously taxed at a 17 percent rage. Under the new tax reform, it will now be taxed at a 14 percent rate.
For those of you not familiar with the basics of tax laws, lower rates translate into less funds withheld from your paycheck. Meaning: more money that you can bring home.
Good news for small business owners
If you own a small business in Fort Lauderdale or elsewhere in Florida, the Tax Cuts and Jobs Act will bring substantially more money in annual income. Under the new tax reform, workers with pass-through income from a small business or LLC will be able to submit tax payment at a lower rate.
Our Fort Lauderdale tax lawyers at Zuckerman Law explain that a small business with $150,000 in annual income would be paying about $10,000 less in annual tax payments to the federal government.
Do you still have questions about how the . will affect you and your household income? Speak to our tax lawyers right away to find out how the new legislation will benefit your family.
Call our attorneys at 754-201-3536 or fill out this contact form to get a free consultation.