For years we have been able to deduct around $4,000 per person for each person claimed on our tax returns due to what is called the "personal exemption." The Tax Cuts and Jobs Act eliminates this deduction.
This is a good time to bring up the fact that the majority of the provisions of this new tax law are not permanent - they become effective this year and are currently set to expire after 2025. Now, nothing is stopping the government from making further changes to the tax code like simplifying it, for example, which has always been President Trump's plan. But for the time being these tax cuts expire after 2025 and many of these changes will go back to the way they were in 2017.
Before you yell and scream about losing the personal exemption check out my next blog about the increase in the "Child Tax Credit."
We are on top of this new tax law here at LCI Taxes and are ready to help you and your family prepare for these changes as well as any other that may be forthcoming. Give us a call at 386-586-3976 with questions or to schedule your appointment!
Chris Kocher CPA