Unfortunately, nowadays we cannot do without taxes, and this is a daily evil, with which we all resigned. And now the good news is that the major updates that appeared in our tax code in 2019 make life easier for all citizens.
Just imagine, for thirty years the federal tax system has not been updated and has not changed at all! And this day has come – the current administration has begun to change and supplement the Tax Code.
Among the important changes should be noted the tax adjustment, as well as credit amounts and deductions. Tax penalties for those who have delayed the filing of documents and paying taxes have also become tougher.
Categories and deductions
The federal tax system is divided into so-called categories in which the interest rate of taxes differs depending on the income of the taxpayer. These categories are directly related to “adjusted gross income” – in fact, it is less than the so-called unprocessed gross income. More details are given in the W-2 or 1099 report.
In 2018, there was an adjustment of the brackets in question, so for some categories of citizens, the tax assessment will change. If we compare the rates of previous years, now the rates have decreased by a few significant percents. Also, citizens who fall into the selected seven categories of income will pay taxes at a fixed rate of 22%. So, family people who earn from $ 77,400 to $ 165,000 and single citizens with an income of $ 38,700 to $ 82,500 per year will pay exactly at the adjusted twenty-two interest rate.
Allowable deductions also changed over the past year, and we will give them a few separate words. The habit of taxpayers when filing a declaration included the use of “standard deduction” – this technique allows not detailing every deduction, but slightly increases the amount of such a deduction. Now the standard deduction will be:
● for single citizens – $ 12,000;
● for spouses – $ 24,000;
● for the head of the family with children – $ 18,000.
Also among the significant changes in deductions should be noted the immutability of the student loan – $ 2500. But highly paid employees will be able to get rid of this type of tax altogether – earning more than $ 135,000 will get rid of it forever, subject to the provision of adjusted gross income.
Submission and return
But the deadline for filing civil and commercial declarations remained unchanged. Personal documents must be submitted by citizens no later than 15/04/2019, with the possibility of renewal until 15.10.2019. Otherwise, the applicable fines will be applied to those who are late.
Declarations for the past 2018 began to be accepted from 01.28.2019. Refund of deposit will be expected by taxpayers within ten days or a maximum of two weeks if a citizen requires a paper check.
Doubling the standard deduction, as well as a change in rates is very beneficial to Americans, as they expect a high refund. This is especially true for highly paid employees who actually benefited from the changes made in the United States Tax Code (IRS).
And a few more changes
A new era in taxation has already begun. Many have already felt relief, as well as the specificity of changes to the Tax Code and their impact on certain categories of persons, enterprises, professions, and situations. And from the abolition of the tax era, Obama pleased absolutely everyone. This payment was assigned to those who did not have medical insurance. Now several million citizens will not be included in the mandatory plans of employers, which were included in the old tax plans.
Also, the changes affected alimony and transport taxes for civilians (not serving in a military position) – they were completely abolished.
Americans with significant medical records can also breathe with relief – the allowable deduction for medical expenses has been increased and now citizens who have medical bills range from 7.5% and more significantly reduce their expenses.