Tax Reform Laws: three scary words for most Americans.
But, it's not all scary.
In fact, there's some good news too. Many tax filers have already seen more in their paychecks thanks to the reform.
More now, means less later. So, don't expect a big refund.
We know that's a lot to digest!
That's why TheStreet has partnered exclusively with TurboTax. Watch the full webinar with TurboTax tax expert and CPA Lisa Greene-Lewis and Tracy Byrnes. They tackle everything including changes for families, small businesses, students and more!
Don't have time for the full conversation? That's alright. You can watch the short clip above that focuses on the key tax reform changes:
1. Lower Tax Rates
If you're a member of the completely oblivious camp, you may have have missed that five of seven tax rates are lower this year. You didn't get a fantasy raise; that paycheck was bigger for a reason.
2. Changes to Deductions
The size of the standard deduction nearly doubled to $12,000 for single filers and $24,000 for married couples, but that comes at a price. Quite a few itemized deductions including those for moving expenses and alimony have been eliminated.
3. Elimination of Personal and Dependent Exemptions
Speaking of eliminations, personal exemptions are now a thing of the past. Once upon a time in 2017, filers could claim $4,050 per taxpayer, dependent and spouse.
4. Increases in the Child Tax Credit
Good news parents, that rugrat just got more lucrative. The child tax credit increased to $2,000 from last year's $1000 and the new code adds a $500 credit for non-child dependents (Looking at you, basement dweller.)
Not eligible last year? You'll want to check again since the income limit was raised to $200,000 for single parents and $400,000 for married couples.
5. Changes for Homeowners
That white picket fence may not be as much of a saving grace this year. Previously, state and local property, income and sales taxes were fully deductible. Now that number is capped off at $10,000.
Watch the full webinar here.