New tax law
There's a new tax law in town, and while that doesn't mean much for your 2017 taxes, you may start noticing a difference in your paychecks by February. The new tax plan makes mostly minor changes, but some of those changes have big implications for low and middle income Americans, and there are a few things to be genuinely excited about. Here are a few of the ways your taxes will be changing next year.
New standard deduction
The new tax law nearly doubles the standard deduction, which means people who choose not to itemize deduction will have their income tax reduced or eliminated. In addition, a number of people itemizing will find it more beneficial to file a 1040-EZ.
Child tax credit
The child tax credit is doubling as well. Since this one is a credit, it doesn't reduce your taxable income, it just counts as free money to anyone with children.
If you can't afford health insurance, worry no more. The new tax law eliminates the costly penalty for those who are unable to pay costly health insurance premiums.
While there is a lot more that hasn't been discussed here, all of this can add up to thousands of dollars in tax savings for the average American family, so now you can look forward to tax season.