How Will the New Tax Law Impact Exemptions & Credits?

Taxes

Changes to the Federal tax system were signed into law in late 2017. But what do those changes actually mean for the average person?

If you’re like most Americans, you have many questions about how your taxes will be impacted under the new law.

That’s why we’re offering some insight into the new tax law and your taxes. Read on for a look at two questions you might have.

What Will the New Tax Law Mean for the Personal Exemption?

Starting with the current tax year (for the tax return you’ll file in April 2019), the bill eliminates the personal exemption altogether, though this repeal ends after 2025.

However, the standard deductions increase, up to $12,000 for single filers, up to $24,000 for married couples filing jointly, and up to $18,000 for the head of household.

Under the new law, this increase ceases after 2025.

What Will the New Tax Law Mean for the Child Tax Credit?

Regarding the child tax credit, this increases up to $2,000 per qualifying child younger than age 17, with the first $1,400 refundable, according to the Tax Policy Center.

The credit is $500 for other eligible dependents. The refundable portion of the credit is set at 15 percent of your earnings in excess of $2,500, up to $1,400 per child.

This means the tax credit may reduce your tax liability below zero, and you might still be able to receive a tax refund. The cut off for the tax credit increases from $110,000 to $400,000 for married couples filing jointly.

As with the standard deduction, this increase also ends after 2025.

Contact a San Diego Divorce Lawyer

When you’re going through a divorce, an experienced divorce attorney can help you understand the process and how to navigate child custody and child support. Questions about taxes and other financial issues are common.

If you are considering divorce or have already made the difficult decision to pursue divorce and have questions, contact JWB Family Law to schedule a free consultation.

JWB Family Law Adds Anne B. Howard ESQ., as a Senior Associate Attorney

JWB Family Law is expanding its team to welcome Anne B. Howard, ESQ, as a Senior Associate Attorney. Anne brings extensive expertise in family law to the team, specializing in child support, paternity, asset, and property division, and divorce. “I was drawn to the...

Custody and Successful Co-Parenting During the Pandemic

The COVID-19 pandemic has wreaked havoc in our daily lives. Schools are closed, parents are working from home, and some have lost their jobs. Life is not what it was just a few months ago. Children are now with parents all day—every day. Parents are now responsible...

How to Deal With Domestic Violence During COVID-19

There is a growing concern amongst professionals regarding a rise in domestic abuse during the COVID-19 pandemic. In the period from March 1 through April 25, 2020, the San Diego County Sheriff’s Department logged 2,309 domestic-related calls. This is roughly a three...

JWB Family Law Continues to Serve Clients During COVID-19

Heightened anxiety and uncertainty in the world often result in significant family distress, including a surge in domestic violence incidents. As a family law practice, we need to show up for our clients now more than ever. For that reason, JWB Family Law is operating...

How Do I Change My Family Court Order and When Should I Do It?

When should you change your Family Court order?  When it no longer serves the needs of your family.   For example, if a custody order is entered when your baby girl is two years old, it may say she stays with each parent for 2 or 3 days and then trades back.  This is...

What is Family Court Services Mediation and Do I Have to Attend It?

If you are unhappy with your current custody plan, or need to create a new one, you may ask the court for assistance.  To do that, you will need to file a Request for Order with the local court. Immediately upon filing the Request, you will receive a date to attend...

How to Legally Obtain a Paternity Test

It happens.  Sometimes we do not know who the biological father of a child is.  It is important information. Paternity effects health issues, as well as the socioeconomic ones.   Enter the paternity test.  It is not like the old days of enormous expense, blood tests,...

JWB Family Law Adds Carmen E. Ramos, CFLS, as a Senior Associate Attorney

JWB Family Law is expanding its team to welcome Carmen E. Ramos, CFLS, as a Senior Associate Attorney. Carmen joins the JWB Family Law legal team to help the firm in all aspects of family law: divorce, child custody, child support, spousal support, and property...

The Basics of Filing for Divorce in San Diego

To begin the process of filing for divorce in San Diego County, you will need to file a Summons (FL-110), and a Petition for Dissolution of Marriage (FL-100). If you have children, you will also need to file a Declaration Under Uniform Child Custody Jurisdiction...

Custody Rights: Prepare for Mediation with Family Court Services

If you are involved in a family court case in San Diego County and there are issues of child custody rights and visitation, at some point you will need to attend court-ordered mediation with Family Court Services. This usually takes place prior to any court hearing on...