The larger deduction won;t take affect until 2019.
New tax laws weren’t retroactive to 2017.
It doesn’t show until next year.
The tax changes only apply starting in the 2018 tax year.
I believe that doesn’t kick in till next year.
The standard deduction for single taxpayers and married couples filing separately is $6,350 in 2017, up from $6,300 in 2016; for married couples filing jointly, the standard deduction is $12,700, up $100 from the prior year; and for heads of households, the standard deduction is $9,350 for 2017, up from $9,300.
Standard Deduction Amounts. As written, the standard deduction amounts will increase to $12,000 for individuals, $18,000 for heads of household, and $24,000 for married couples filing jointly and surviving spouses.
f you are age 65 or over, blind or disabled, you can tack on $1,300 to your standard deduction ($1,600 for unmarried taxpayers).
As written, there will be no personal exemptions for 2018.
Remind me never to ask you for Tax advice. #;^)
The IRS issued new withholding tax tables to employers and payroll companies that will adjust the amount withheld from your check as per your W4 exemptions. Don't work for an employer or don't work many hours? Minimal change.
The new rates for 2018 (and even some for the 2017 tax year) will be published throughout the year as Congress gives direction to the IRS, or as the IRS just decides to make up tax laws and regulations out of whole cloth.
As in every year, there are forms for 2017 that will not be finalized until February or March.
I don’t need tax software to print off a postcard.
You may be able to see the US Tax Cuts benefit NOW. See your tax adviser to see if you can increase your exemptions and see an increase in your pay NOW!
Doesn’t apply to 2017 taxes.
What sort of tax software? Are you talking about the tax software you use to prepare your 2017 tax return due on April 15 of 2018? Or are you talking about a payroll software for processing 2018 payrolls?
If you are talking about the tax software (H&R Block, Turbo Tax, etc.) for the 2017 tax year for the return you will be filing in 2018, you will not see any changes because the tax reform bill changes, for the most part does not go into effect until the 2018 tax year (the tax return you will file in 2019).
If you are talking about payroll software for processing 2018 payrolls, the updated withholding tables were just released by the IRS on 1/11/2018 so depending on the payroll software or processor, the new withholding tables may not have been updated yet. The IRS does say “Employers should begin using the 2018 withholding tables as soon as possible, but not later than Feb. 15, 2018.”
The IRS has not revised the W-4 for 2018 as yet but once it does, you may want to think about calculating your tax liability and submitting an updated W-4.
Wrong year. 2017 taxes are under the old rules. Which is why folks were rushing to make contributions and pay state and local taxes.