The Tax Cuts and Jobs Act snuck up on us quickly. Make changes took affect January 1, 2018 and many people are beginning to realize that they may have a tax problem in 2018. There are three simple things that all taxpayers should do immediately:
- Estimate your current year’s income tax liability under the new law. Some people will owe less, some will owe more1. Make certain that you are not relying on guesswork or an article that you read in the news.
- Adjust your wage withholding based on the new law and your adjusted tax liability. For salaried workers, this means filing an amended Form W4. For self-employed people, it means an adjustment of estimated tax payments.
- Revisit your overall tax and financial planning. The new law and larger economic trends change the way we look at long-term financial planning. Now is the time to make adjustments that lock in benefits for your future.
I am pleased to help any taxpayer step through these necessary adjustments.
1 Nationally, the federal government estimates that 4 people will see a tax cut for every 1 person who suffers a tax increase in 2018. However, among upper middle class taxpayers in the northeast region of the US (my area) a higher proportion of taxpayers are likely to see an increase.