What does the new tax plan mean for you?
ASHEVILLE, N.C. (WLOS) —
What do the new tax cuts mean for you? Local certified public accountant David Worley said all taxpayers should see some benefit from the tax plan.
The new tax plan keeps the seven brackets, while reducing the rates for five of them.
Your paycheck will likely be larger starting in February, when your employer implements the new withholding tables. When News 13 crunched the numbers, someone who makes on average around $75,000 will see about $500 more in their paychecks spread across the year.
Another big change will be in deductions.
There will be an increase in the standard deduction, which will nearly double for most families. That means many people will no longer need to itemize their tax filings.
On the other end, if you plan to buy a home, it will affect deductions on new mortgages and second homes.
“The new law limits a new mortgage to $750,000 and it also does away with the interest deduction on home equity lines of credit and it eliminates for those people who might have vacation home or a second home it eliminates the ability to deduct a mortgage on more than one residence,” said Worley, of Worley, Woodbery and Associates, PA.
More good news, teachers can still deduct up to $250 for classroom supplies, education credits remain untouched and student loan interest is deductible up to $2,500.
There's some bad news, though. Moving, job search and tax preparation expenses, along with alimony, can no longer be deducted.
On your federal taxes, you will now capped on the amount of state and property tax you can deduct. Combined, you can deduct up to $10,000.
Because of the changes that will be made to the 2017 filing documents and software, CPAs said the IRS will likely delay the open of the filing season this year.
If you have questions you can contact Worley, Woodbery, & Associates, PA at 828-271-7997 or email@example.com.