2018 TAX LAWS - How will they affect you?

INDIVIDUAL TAXES

Tax Rates - While there are still 7 tax rates, most have been lowered from the 2017 rate.

• 10%
• 12% (lowered by 3%)
• 22% (lowered by 3%)
• 24% (lowered by 4%)
• 32% (lowered by 1%)
• 35%
• 37% (lowered by 2.6%)

Note: Most married income thresholds are double the single, meaning the marriage penalty of prior years is eliminated for most tax brackets. Long-term capital gains tax rates remain unchanged for 2018 and range from 0% to 20%

Child Tax Credit (CTC) - The CTC doubles to $2,000 in 2018, with phase out of the benefit starting at $400,000 for married and $200,000 for unmarried taxpayers. The CTC is available for most parents with children 16 or younger. The law makes $1,400 of the credit a refundable credit, creates a new $500 family credit for dependents ineligible for the CTC.

Redefinition of the Kiddie Tax Rules - Unearned income of children 19 or younger (age 24 if a qualified student) will use the estate and trust tax rates to determine income tax. Former rules did not tax the first $1,050 of unearned income, taxed the next $1,050 at the child's tax rate, and taxed any excess at the parents' tax rate. The new rates range from 10% to 37%.

Brochure: For more information, we have provided a brochure that contains more details about the 2018 Tax Law changes... read more

Why Use a CPA?

• Experience - CPAs work with a variety of cliental providing solutions to complex tax and accounting issues.
• Education and access to resources – Individuals must pass a rigorous exam and meet minimum experience requirements prior to becoming a CPA.
• Objectivity – CPAs are trained to be independent and objective which makes them an invaluable member of a business owner’s team.
• Trusted Business Advisor – CPAs are asked to give their advice and insight on a surprising number of non-tax, non-accounting, and non-auditing topics.

Why Choose Susan C. Bersch?

• Knowledge - Susan has the knowledge and experience you need. She has provided businesses and individuals with tax, accounting and business advisory services for over 30 years.
• Trust - Susan has always worked hard for her clients’ success and will do the same for you. She understands your business and the business world you operate in.
• Understanding - Needs and priorities change over the lifetime of a business and also over the lifetime of an individual. Susan understands the lifecycle of businesses and individuals and advises her clients according to their unique needs and situations.