The IRS has announced a number of tax-related changes/provisions for the 2018 tax year. These changes are a result of the Tax Cuts and Jobs Act, which was passed towards the end of 2017. The Earned Income Credit is one tax credit that was impacted by this legislation.
The Standard Deduction
The standard deduction has changed under the Tax Cuts and Jobs Act. For individuals, the number goes up to $12,000, $18,000 for heads of household, and $24,000 for married couples.
There will be no personal exemption for the 2018 tax year
As a component of this legislation, there will be no personal exemptions for the 2018 tax year. Here are some of the changes that impact individuals and married filers:
For individual filers, they will be required to file a tax return if their gross income is greater than the standard deduction
For married filers, they will be required to file a tax return if their gross income (for a joint return) is greater than the standard deduction
For the 2018 tax year, the Earned Income Credit amount available is $6,431 for filers who have 3 or more children (who qualify).
Although the full impact of the Tax Cuts and Jobs Act is yet to be seen, there is no doubt that certain tax credits will be affected.
The professional team at the Tax Defense Group has more than 50 years of combined experience in dealing with filing our clients’ taxes and resolving their tax issues. We’ve helped families from all walks of life and we do this by getting to know them, and by doing our homework by looking at every aspect of their financial situation and by acting accordingly. Once we’re on the same page, we’ll present your options to you. The Tax Defense Group will even handle correspondences with the IRS on your behalf (if that service is needed).
Whether you owe money to the IRS or you have a State tax debt, our staff of Enrolled Agents and Tax Attorneys can help. We have experience negotiating with the IRS in all 50 States.