In a recent interview Accountant Harvey Koehler highlighted the important role accounting professionals and enrolled agents will play in helping clients navigate changes in the new tax code. —
On January 1, the Tax Cuts and Jobs Act of 2018 signed into law by President Trump came into effect, enacting changes to the tax code. Most of these changes will last until 2025.
When asked to comment, Mr. Koehler said, “The comprehensive changes will affect people in different ways depending on their specific tax situation. An experienced accountant can make a huge difference in how much money you save in next year’s tax return.”
One of the more controversial changes applies to pass-through companies, which comprise 95% of all businesses in America, according to Business Insider. Pass-through entities include sole-proprietorships, partnerships, S corporations, and LLCs.
“Small business owners are now allowed to deduct 20% of ‘qualified business income,’ although the law introduces a number of caveats. An enrolled agent is essential in advising their clients as to what can and can’t be claimed as per the new regulations,” Koehler said.
At the individual level, one of the most significant developments includes lower tax rates on personal income, with those on the higher end of the income scale benefiting the most. While standard deductions have increased, itemized deductions have been put on hold.
“Undoubtedly, working with an enrolled agent will help determine how much of someone’s paycheck will change on a month-to-month basis, as well as over the long term in filing their taxes,” Mr. Koehler said.
Additionally, everything should become clearer as employers comply with the new tax code next month. On December 26 2017, the IRS said that the “use of the new 2018 withholding guidelines will allow taxpayers to begin seeing the changes in their paychecks as early as February.”
While this new code does bring about shifts in the tax landscape, Koehler says that these changes can easily be incorporated into his client’s short- to medium-term financial planning with the right advice..
“For the majority of people, the new tax code should not mean a dramatic change to their lifestyles and plans. However, it’s best to consult with a tax expert on how to tweak things to be certain financial needs and goals are met,” Koehler said.
For more information please visit https://www.harveythetaxman.com/
Name: Harvey D. Koehler
Email: Send Email
Organization: Harvey The Tax Man
Address: 11001 W 120th Ave #400, Broomfield, CO 80021, USA
Source URL: http://RecommendedExperts.biz/
Release ID: 293653