At the end of last year, the Congress has passed the H.R.-1 – TCJA (Tax Cuts and Jobs Act), which provides the largest change brought in the history of US tax code since the year 1986. The bill was signed and came into law with effect from December 22, 2017.
As per the changes brought into the US Federal tax law, under Tax Cuts and Jobs Act, it would maintain 7 tax brackets but rates would be cut at every level. This has raised the income thresholds of many individuals who now qualify for the higher brackets. For instance, the top rate is reduced down from 39.6% to 37% and this applies only to married individuals who earn more than $600,000, as contrary to the previous current top-level kicking in at $470,000. This is also the level where the highest long-term capital gains rates enter, which results in further tax savings for individuals who are higher taxpayers. Whether it is for your individual tax return or for your business, you need to take help of a reliable agency that offers tax services in Santa Monica. Unless you take help of a professional CPA, there would be chances of error while filing the tax return. So, you have to rely on the experienced professionals, when it comes to taking care of your taxes.
The IRS or Internal Revenue Service has also revised the form 1040-ES and instructions to help the tax practitioners and the taxpayers prepare in advance for the changes that have taken place, in the wake of this recently enacted TCJA. The first quarterly estimated tax payment would be on April 17, 2018, which is also the filing deadline for annual tax. The agency offering tax services Santa Monica calculates the tax for individuals and businesses, even including those who have substantial income that is not subject to withhold the taxes. For instance, the newly enacted tax law has brought in a change in the tax brackets and laws, upped the standard deduction, overhauled business expense deductions, increased the child tax credit, got rid of personal exemptions, and stopped or limited certain deductions. This means that as a taxpayer, you would need to lower or raise the amount of tax you pay each quarter, through this estimated tax system. This is where service of the hired tax professionals is required.
The professional proving tax services in Santa Monica would explain to you in brief about the major tax changes, the income tax rate schedules for 2018, and determines the correct amount of tax you need to pay. The professional also gives a detailed look into all your financial statements, considering each financial transaction, and then helps you to determine whether you need to pay estimated tax, owe Alternative Minimum Tax, or have some other special situations because of the capital gain or dividend income you have. This is the reason you need to select a reliable tax servicing agency and get the best professionals in the industry to take care of your tax-related matters.