Trustway Tax & Accounting, an Alabama based company specialized in financial and tax reduction strategies, launched a new report on the U.S Governments new individual income tax return form that Americans transmit to the Internal Revenue Service annually, also known as Form 1040. The report covers the most important changes made to the individual income tax return form that is intended to simplify tax filing by replacing not only the current form 1040 but also forms 1040A and 1040EZ.
More information can be found at https://trustwayaccounting.com/new-tax-forms-can-make-doing-taxes-harder.
The Trump administrations new form eliminates more than half of the 78 line items from the previous form, reducing it from two full pages of text to one double-sided half page. However, shrinking the form that most Americans send to the IRS every year does not necessarily make filing taxes easier.
Readers will find a brief description of the updated form, including checking a box on the front to indicate whether the American taxpayer is taking the standard deduction along with the personal information, or listing ones income and withheld taxes on the back of the new individual income tax return form.
According to the report, Americans with even slightly more complex situations, however, or those who wish to itemize deductions have to submit additional paperwork. This includes more paperwork in most cases than they had to file in previous years.
Business owners are also expected to do more paperwork after President Donald Trump signed into law the American Tax Cuts and Jobs Act. The Act allows most small businesses to deduct 20 percent of their business income in addition to having their taxable income taxed at lower rates and, for the first five years, they will be able to write off investments in new equipment the year the investment is made.
The report then mentions several other upcoming changes that every American taxpayer should expect. These include the $4,050 personal exemption on tax forms in 2018 and replacement with a $500 credit for non-child dependents. Trustway Tax & Accounting is available for professional tax law changes monitoring and proactive advice on tax and financial planning strategies.
Interested parties can find more information by visiting the above-mentioned website.
For more information, visit: https://trustwayaccounting.com