What is New on my Taxes in 2017?
It is that time of the year again: tax time. Every year Americans gear up for tax season starting in January, to be ready to submit their taxes by April. Each year the government releases new tax laws and deductions, often making tax time more complicated and confusing for people around the United States. But understanding new tax laws and deductions doesn’t have to be overly complicated or stressful.
With the help of a CPA, or a little research, you can understand what has changed on your taxes, and file your taxes with as little stress as possible. Taxes can be especially confusing for small business owners, but our skilled team can help you understand any new tax laws that may apply to you and your situation. Let’s take a look at some of the changes you may notice on your taxes in 2017.
Standard deductions for taxpayers have been adjusted to reflect inflation over the last year. Payers filing singly and married payers filing separately can now deduct $50 more than last year, totaling $6,350. Likewise, for married couples filing jointly, the deduction amount is $100 higher than in 2016, and is now $12,700. The head of household deduction has also increased $50 from last year, resulting in a deduction of $9,350. Finally, the deduction for the aged or the blind is $1,250 in 2017, with an additional $300 deduction if the individual is unmarried. There are also several exemption changes that were made in 2017 that are noteworthy. Families who adopted a child in 2016 are eligible for an adoption credit of $13,570, and the maximum Hope Scholarship Credit for 2017 is $2,500. In addition, a deduction for Student Loan Interest up to $2,500 can be taken, as well as a travel expense deduction up to $255.
Another notable change for taxes this year is the return timing has changed. Tax refunds or over-payment returns will not be issued until February 15th at the earliest this year. While the amount of a return you may get isn’t in any way impacted by this new regulation, the timing of your return may be. If you planned to get your taxes in early so you could get your return early, you may need to take this new date into consideration and plan accordingly. This new date may cause cash flow problems for small businesses or individuals who counted on that return sooner.
Taxes can be stressful, and just when you think you’ve got it down, the IRS changes things and makes it confusing all over again. For small business owners especially, tax time can be confusing and you’ll need all of the deductions you can get. At CFO Source, our team can help you navigate your taxes and help you get back as much as you deserve. Whether you own a small business, a large business, or just do some work on the side, our team can help you get back the money you’ve worked hard for.