Learn How the New Tax Laws Should Save You Significant Money & Time

In the United States of America, there were new tax laws passed that make major changes to core principles of the tax code, and these changes should help many people get back and save a lot more money on their taxes starting this year!  In addition, these core tax law changes help to make the most complicated and time consuming aspects of doing taxes much more simple.  These new tax laws are a great change for this country, and we are excited to see the core changes to deductions & credits as well as changes to the tax brackets in action this year!  Starting this year, people doing their taxes will not need to keep track of all the little things that they used to have to keep track of with itemized deductions, as everyone will now be using a standard deduction.  This should help to free up a ton of time for these people, while also stopping many headaches they used to get from having to do the things asked of with itemized deductions.  The other major core changes to the tax laws deal with the tax brackets.  The tax brackets have had major changes, and now help the middle and lower classes significantly more by lowering them significantly! With increases to tax deductions & credits that the new tax laws bring, and with the lowered tax brackets from the new tax laws, many people should expect to see increased tax refunds and lowered taxes overall!  The new tax laws makes major core changes to the tax code starting this year, and these changes will bring increased tax refunds for many people, while also simplifying the tax code, making it possible for many people to do their own taxes with the help of new and improved tax software, allowing them to save even more money by not having to pay someone to do their taxes for them too!

There are many great changes in the new tax laws, and one of the greatest changes made to the tax code is with tax deductions.  Now, instead of saving all your receipts, tracking you’re driving mileage, and then having to keep track of all the paperwork are associated with these examples that itemized deductions required, you can simply utilize standard deductions instead, and use a simple flat deduction! Over the next few years, they will be phasing out itemized deductions all together because of how much of a waste of time and energy it was! By 2025, you won’t have the option to use itemized deductions, which we are very happy about. This change to the tax code is huge, as it will help many people have less stress and free up a lot of time, as you won’t need to be tracking all your expenses like you used to for itemized deductions!  Now, you can just use a set number for all your deductions that are 100% larger than the number it used to be; $12,000 for singles, $18,000 for the head of the family, and then $24,000 for married couples.  Itemized deductions, in turn, have been significantly lowered due to major capping on many items, and again it is going to be fully removed as an option to file your taxes by 2025. This makes choosing standard deductions the no-brainer choice for filing your taxes, which makes the overall process of filing your taxes a much more simple process!

The new tax laws have made many increases in tax credits as well!  The biggest credit increase is with the Child Tax Obligation Credit.  It has been doubled, as it used to offer a $1,000 tax credit per child, however now you can get up to $2,000 per child!   $1,400 of this amount will be able to go towards an increased refund amount too!  So for many lower and middle-income people, you can expect to receive back this $1,400 credit as a tax refund for every child you have.  There is an increased qualification with this tax credit, however, and that is that they have lowered the ceiling on being able to qualify to people who make under $200,000 yearly, which is consistent with helping people who earn less than the highest of incomes.  There is also a downfall to using this credit though, and that is it will increase the amount of time it will take to get back your tax refund.  This is because they need to check to make sure you qualify for this credit and have a child, and can only do so after all other filings have been filed!  Here at Tax Refund Loans, we can help you with our income tax advance loan if this is a problem for you, as anyone with a child should definitely be using this tax credit.  We have helped thousands of people get an early tax return back.  All of these increases in tax credits are great for the economy as a whole, and should help a ton of people get increased tax refunds, putting back more money into the pockets of those that earned it!  You can check out the IRS’s page to see all changes to tax credits & deductions.  New & improved tax software will also have all of this information for you, and if you file your taxes yourself using this software, you will make sure you get all the credits and deductions available to you so that you get the highest refund possible from filing your taxes!

Another major change to the tax code that we are very happy to see with the new tax laws, is the lowering of the tax brackets.  There are still 7 different tax brackets based on yearly income earned, however it has been lowered a lot to help the middle and lower classes keep more of the money they earned throughout the year.  The new income tax brackets have been lowered to 10%, 12%, 22%, 24%, 32%, 35%, and 37%. How these tax brackets work is still the same process. For instance, if you’re single and you make $45,000 in gross income in a year, you would pay a 10% tax amount on the first $9,525 of your income; followed by paying a 12% tax obligation on the earnings between $9,525 and $38,700; and finally, there is a 22% tax obligation for the rest of the amount up to the $45,000 that was earned, thus $6300.  Remember though that you get to apply your tax deductions and credits towards figuring out what your total tax obligation amount is, and with these new lowered tax brackets, and the increased tax deductions and credits, many people should expect a significantly larger tax refund starting this year! If you would like to find additional details about the complete list of tax brackets and the changes that were made you can find them here:  Tax Brackets

Overall, The New Tax Laws make considerable changes to the current tax system that we are very happy to see.  These changes simplify the tax filing process and will help many people save time and energy that was once wasted on trying to track tax deductions.  In addition, it will also help many people get back and save much more of the money they earned during the year, instead of it going to the government as taxes, because of increased tax deductions & credits and a lowered tax bracket. Finally, people can now use tax software more confidently, as the process has been simplified, which should make doing your own taxes a top choice for many people, helping them save even more money by not having to pay someone to do their taxes for them. With all these core changes to the tax code, we are very happy with the new laws overall, and you should be too, as you can expect to get back or save significantly more money from your taxes from now on!