Last week we provided helpful tips for understanding your tax situation using your 2017 income tax returns. This week we’re talk about TCJA again. We continue our blog series with ways to start looking forward and making smart decisions that will positively impact your financial situation.
There are two things to consider as you look ahead.
Understanding the impact that the Tax Cuts & Jobs Act of 2017 (“TCJA”) has on your unique financial situation is a great first step. So, often we hear commentary about all the tax breaks in the TCJA, but the truth is that your situation must be considered on an individual basis.
Analysis of personal impacts of the TCJA:
- Loss of exemptions
- Property tax cap
- Eligible for new child tax credit (depends on age and income)
- Adjustment of marginal rates
- Pass through income
- Charitable giving plans
These are just some of the major impacts that the TCJA can have on your tax situation. We cannot stress enough the need to understand and make decisions based on your specific circumstances.
The second step is to develop routines that will keep you on track toward your goals. Nearly every year new tax laws are passed that impact individuals. Plus, each person’s situation changes regularly. Therefore, we must create a habit of reassessing our progress toward our goals to avoid costly surprises.
Routine assessment of your situation:
- Consulting with our CPA: Pre-tax return, May, Fall
- Build a custom tax projection
- Look at changes in your income
- Consider changes in your expenses
- Discuss major personal life-events
- Discuss major business decisions
- Calculate estimated taxes and set aside the funds
These steps aren’t a magic pill that will cure all your financial problems. But, they are ways to make more informed decisions and reduce the potential for surprises.
Take time today to call us at 210-684-1071 to make an appointment to meet face-to-face to see where you can go from here!