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.

Contact JWB Family Law Today

    Categories

    Connect With Us

                

    Contact

    San Diego Office
    1620 Fifth Avenue, Suite 600
    San Diego, CA 92101

    Phone: 619.234.6123

    Temecula Office
    43537 Ridge Park Dr, Suite 100
    Temecula, CA 92590
    Phone: 951.297.3871

    El Centro Office
    300 S Imperial Ave, #10
    El Centro, CA 92243
    Phone: 760.460.4608

                

    Federal Laws & Procedures Impacting Military Divorce

    Several federal laws are relevant procedurally when one or both spouses in a dissolution proceeding are members of the military. Although not every Act applies to every case, it is good practice to be aware of the federal laws and procedures that may impact your...

    A Detailed Breakdown of the Divorce Procedure

    Divorce is an emotionally challenging process that can be difficult to navigate. It’s important to understand the steps involved so that you can plan for the future and make informed decisions. We’ll explain the divorce procedure, including the legal requirements,...

    The Difference Between Contested & Uncontested Divorce

    Divorce is a significant life event that involves the legal termination of a marital union. It is a decision often accompanied by complex emotions, legal considerations, and a multitude of issues to be resolved. When pursuing a divorce and finding a divorce attorney...

    Common Mistakes to Avoid During Divorce Proceedings

    Divorce is a complex and emotionally challenging process that requires careful consideration and strategic decision-making. From navigating legal intricacies to managing the emotional turmoil, divorcing couples often find themselves overwhelmed and prone to making...

    Property Division in Divorce: What You Need to Know

    Divorce is a challenging and emotionally charged process, requiring careful consideration and resolution of various legal and financial matters. One critical aspect that often arises during divorce proceedings is property division.This encompasses a broad range of...

    How to Choose the Right Divorce Lawyer for Your Case

    Divorce is an emotionally challenging and legally complex process that marks the end of a significant chapter in one's life. When facing the dissolution of a marriage, it’s crucial to have the right legal representation by your side. A skilled and experienced divorce...

    Domestic Violence Restraining Orders

    A domestic violence restraining order is issued by the court and serves to protect someone from physical harm, continued mistreatment, or the threat of abuse. Such orders are often issued to family members or a member of the household. However, they can be filed...

    Important Information on Child Custody

    When it comes to family law, child custody is one of the most sensitive and emotionally charged issues. Deciding who will have legal and physical custody of a child can be challenging for everyone involved. It's a complicated process that requires careful...

    What You Should Know About Military Retirement Pay

    In a United States Supreme Court case, Hisquierdo v. Hisquierdo, the Court noted that federal employee deferred compensation benefits may be governed by federal law when applying conflicting state laws related to community property, so as to prevent “major damage” to...

    The Link Between Domestic Violence and Child Custody

    Domestic violence can include physical, verbal, emotional, sexual, and psychological actions. Other actions, such as threats or coercive behavior can also be considered domestic violence. Without a knowledgeable domestic violence attorney, it can sometimes be...