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We are proactive
when it comes to your tax planning and compliance.
You can depend on us to take a proactive approach to your tax planning and compliance needs. We can offer you exceptional thinking and problem solving. While we always build on our experience from one engagement to the next, we also realize that not every client is the same. Therefore we will invest the time to understand your unique situation. We will become your strategic partner.
Creations Tax Service and Consulting is creative yet conservative in tax prep, planning, and strategy. We’ll help you develop strategies that defer your tax liabilities. And we’ll discover other tax advantages that might have been missed.
And as with everything we do, we stay current with changes in tax laws to new compliance regulations. We deliver up-to-date, informed tax services, ensuring you’re doing all you can to minimize your taxes and liabilities.
With the passage of the Tax Cuts and Jobs Act (TCJA), many tax brackets, thresholds, and rates will change in 2018.
Noticeable changes to the structure of the individual tax code include the elimination of personal exemptions, the elimination of the Pease limitation on itemized deductions, and the expansion of the Child Tax Credit.
Additionally, on a yearly basis the IRS adjusts more than 40 tax provisions for inflation. This is done to prevent what is called “bracket creep,” when people are pushed into higher income tax brackets or have reduced value from credits or deductions due to inflation, instead of any increase in real income.
The IRS used to use the Consumer Price Index (CPI) to calculate the past year’s inflation. However, with the TCJA, the IRS will now use the Chained Consumer Price Index (C-CPI) to adjust income thresholds, deduction amounts, and credit values accordingly.
Income Tax Brackets and Rates
In 2018, the income limits for all tax brackets and all filers will be adjusted for inflation and will be as follows. The top marginal income tax rate of 37 percent will hit taxpayers with taxable income of $500,000 and higher for single filers and $600,000 and higher for married couples filing jointly.
|Rate||For Unmarried Individuals, Taxable Income Over||For Married Individuals Filing Joint Returns, Taxable Income Over||For Heads of Households, Taxable Income Over|
• The work opportunity tax credit is extended through 2019.
• In 2016, the credit is also modified for employers who hire qualified individuals who have been unemployed for 27 or more weeks and increases the credit to 40 percent of the first $6,000 earned for these long-term unemployed individuals.
Permanent extension of the ability to claim an itemized deduction for state and local general sales taxes in the place of an itemized deduction for state and local income taxes.
Contact Creations Tax Service & Consulting if you have questions on this summary or want to understand how the PATH Act legislation may impact you or your business
Creations Tax Service & Consulting
We help business owners and other individuals with tax goals and complexities understand, plan execute the various aspects of AMT, charitable contributions, estimated payments and withholdings, energy-saving home improvement credits, and gift tax. All of our work is tailored to the individuals needs and is integrated for both federal, state and local taxes.
Contact Daphne Sizemore, President of Creations Tax Service & Consulting today and get your taxes done right! Relax, We got all the pieces...