NATP advises working with trusted tax pro in light of Tax Cuts and Jobs Act
APPLETON, Wis. - Dec. 7, 2018 - PRLog -- The recent changes under the Tax Cuts and Jobs Act can make filing a tax return simpler. The increased standard deduction coupled with the elimination of many common deductions will allow a greater number of taxpayers to file their own return; however, NATP advises taxpayers still work with a tax professional as they file their 2018 returns.
"Tax pros are indispensable when it comes to helping clients save tax and use the tax laws to their advantage," Cindy Hockenberry, director of Tax Research and Government Relations, said. "Mistakes made because one doesn't understand the law is costly in the way of time and money."
Taxpayers with children, especially college-age children will see changes regarding the dependency deduction and will need to understand the rules for properly calculating the credits they are entitled to claim, and the rules for deducting college tuition costs. There have also been changes to the rules for contributing to a college savings plan.
Certain business owners who own an interest in a pass-through entity such as a partnership, S corporation or sole proprietorship are now entitled to a deduction of up to 20 percent of the qualified business income (QBI). Hockenberry said although there was a characterization that the new tax law would make filing simpler, but "there is nothing simple about [the QBI] deduction and how it's calculated."
"Overall, some tax professionals may see a slight drop in business this tax seasons due to some of the simplification,"
To learn more about NATP, visit www.natptax.com.
Nancy Kasten, Director of Marketing