In December of 2017, several fiscal changes were made on a federal level involving our taxes. Trump signed the Tax Cuts and Jobs Act which eliminates personal exemptions, cuts individual income tax rates, and doubles the standard deduction.
How Have Tax Rates Changed?
The lowest tax-paying members of society faced no change from 2017 to now. They previously paid a 10% rate and will continue to do so. The middle tax bracket, consisting of households with an $82,000 to $157,000 income saw a significant reduction from a 28% rate to a 24% rate. The wealthy now pay a 37% rate, rather than the 39% rate they used to pay.
Taxes and Inflation
Every year, inflation causes people’s wages to rise, and therefore people are constantly moving up tax brackets. From 2017 to 2018, nearly 5% of households in the entire nation began paying more taxes. To put that in perspective, with roughly 130 million households in the nation, that means about 6,379,500 of them now owe the government more money. Always make sure to be aware of the bracket you reside in and pay those taxes!
Whether you owe money to the IRS or you have a State tax debt, our staff of Enrolled Agents and Tax Professionals can help you! We have over 50 years of experience negotiating with the IRS in all 50 States.
Call The Tax Defense Group today!