KALISPELL - It’s officially tax season and although the recently-passed tax bill won’t take effect this season, here are some of the expected changes for when the bill kicks in.
Mark Robison, the owner of Liberty Tax in Kalispell who's filed taxes in the valley for eight years, explained how families could see some benefits from the new tax rates next season.
“It'll be really interesting for me to see how this all pans out in real life when we do several hundred returns and I can see how people compare year over year, but it’s pretty obvious just the fact that the child tax credit is doubled, families with children, is going to be very, very helpful,” Robison said.
The child tax credit pays dollar for dollar on taxes owed, which means that the tax credit for a family with three children would be $3000 this year, but next year that same family would have $6000 worth of credit to pay taxes.
Not only will the child tax credit double but the standard deduction will as well.
The deduction will increase from 6,350 to 12,000. And for married couples will increase from 12,700 to 24,000.
Liberty tax estimates 80 percent of taxpayers will see a tax cut under the new rates, but Robison added that it won’t affect everyone the same way.
“If this family made the national income median of $73,000 a year, their tax bill would be cut by $2,059 and that’s great," Robison said. "It doesn’t affect everyone positively and it gets kind of complex."
Another big change will be for those who don’t have health insurance.
You still pay the penalty for 2018 but won’t in 2019. As far as tax credits go, it appears families will receive some help, but for the rest of the various concerns towards the new bill, we will have to wait and see how it unfolds.
Taxes are due by April 17th this year.