With tax time fast approaching, today we're discussing the new tax plan and how it will affect you. Let's say you're single and your taxable income is $40,000. Your top tax rate has been cut by more than half. It's been slashed from the old rate of 25% to the new rate of 12%. But what about couples?
For a couple filing jointly with twice the taxable income of $80,000 would be have a top tax rate of 22% versus 25% under the old law.
There are a lot of changes and every taxpayer's situation is unique. Reviewing your individual anticipated tax impact will help you plan for the financial impact, avoiding surprises if your tax increases or planning tax payments if it is decreasing. It's always best to talk to your financial planner or tax person who knows your specific situation before following any advice.
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