Prescott income tax and paralegal services - family law, estate planning, business formation, and income tax preparation
Call Us Today: 928-778-3113
 

Arlene Rheinfelder, EA, CP AZCLDP

"I help solve people's problems. There is nothing more rewarding than helping someone through a difficult situation, and helping them to find a good resolution." 

 

Melissa Hill, AZCLDP

I love the challenge of finding a way to help each person's unique situation. It is never the same because each person is different with their own needs and wants.

Save On Taxes image by 123rf.com

Charitable Donations and Tax Reform

For the past 6 weeks, at Prescott Tax and Paralegal we've gotten numerous calls asking, "What will the new tax bill mean to me?" To which I replied, "No idea. Nothing has passed yet." The House has now passed the version that came out of conference and the Senate is predicted to follow suit. While I do not have every detail of the new bill, one thing seems clear: the standard deduction will be nearly doubled. The new standard deductions will look something like this.

 

Standard Deduction Current Law New Law
Single/ Married Filing Separately $6350 $12,000
Head of Household $9350 $18,000
Married Filing Jointly $12,700 $24,000

What does this mean?  It means that if you normally itemize, in 2018 you will need more than $12,000 (for a single person) in itemized deductions to be able to itemize for federal purposes.  This means that if you were waiting until 2018 to make your AZ Tax Credit Donations (these are Arizona specific), you will probably be better off to make those donations in 2017 to increase your 2017 federal itemized deductions. If you wait until 2018, you will get the AZ Tax Credit, but will most likely be unable to itemize for federal purposes.

There is much more to the new tax bill, but making the AZ Tax Credit Donations prior to the end of the year is likely to help many Arizonans save overall on the federal taxes if those folks normally itemize.

For those of you who want a preview of what your tax savings under the new bill might look like, please visit The Tax Plan Calculator. Please remember that the calculator is a GUESS based on what the creator thinks the final bill might have in it.  Prescott Tax & Paralegal looks forward to updating when a final bill becomes law.

Save On Taxes image by 123rf.com

Share:

 

Posted to: Helpful Articles

 

All Blog Posts

 

Please Note: We are NOT attorneys and do NOT provide legal advice. Your information is confidential, but we do not have attorney-client privilege. If you need legal advice, you will be referred to an attorney.

Follow:

Prescott Tax & Paralegal LLC on facebookPrescott Tax & Paralegal LLC on google+Prescott Tax & Paralegal LLC on youtubePrescott Tax & Paralegal LLC on blogger
Prescott Tax & Paralegal LLC on facebook Prescott Tax & Paralegal LLC on google+ Prescott Tax & Paralegal LLC on youtube Prescott Tax & Paralegal LLC on blogger