The upcoming tax season will be the first time many people will face a new tax liability under President Donald Trump’s tax reform. And for these filers, how their tax liability will look remains mysterious. MWE tax Partner Lance Christensen spoke to U.S. News & World Report about what people should expect to see on their tax bills and who stands to benefit the most.
Taxpayers may feel like they’re entering into the vast unknown this tax season.
It will be the first year that many filers will face their new tax liability under President Donald Trump’s tax reform. And for these filers, how their tax liability will look remains mysterious. “There will be some people who will be surprised,” says Lance Christensen, certified public accountant and tax practice leader and partner at Margolin, Winer & Evens in Garden City, New York. “Hopefully they’ll be pleasantly surprised.”
Experts warn that there may be delays and confusion as the IRS, tax-filing software providers and tax preparers integrate the Tax Cuts and Jobs Act into their filing and processing systems. In the meantime, you can use any time before the new year to start considering what your tax bill will look like and make preparations.
So will you thank or curse Trump when taxes are due? Like any question that involves taxes, the answer is: It depends.
The group of taxpayers who will be thanking Trump the most are a certain subset of qualified business owners, experts say. “The real winners are individuals who own businesses through pass-through entities, through partnerships and S-corporations,” Christensen says, referring to businesses that pay taxes at their owners’ individual tax rates. Read More >>