Navigating tax law changes can be a daunting task for individuals and businesses alike. Certified Public Accountants (CPAs) play a crucial role in helping taxpayers understand and adapt to these changes, ensuring compliance, and optimizing tax outcomes.
As tax laws change, Marcus, Fairall, Bristol + Co., PLLC is here for all of your tax planning and problem-solving needs. We help small businesses, non-profits, and individuals navigate the ever-changing tax field. Contact us online or call (915) 775-1040 to learn more.
Potential Tax Law Changes and Their Impact on Individuals
The tax landscape is set to undergo significant changes in the coming years, particularly with several key tax provisions expiring after 2025. These changes can significantly impact individuals’ tax liabilities and financial planning strategies.
Changes in Tax Rates and Brackets
One of the major changes is the potential increase in tax rates and adjustments in tax brackets. Currently, the tax rates range from 10% to 37%, but they are set to revert to pre-2017 levels, which are higher. This means many taxpayers could see an increase in their overall tax liability.
Standard Deductions and Personal Exemptions
The standard deduction was significantly increased under the 2017 tax reform law. However, this provision is set to expire, potentially reducing the standard deduction amounts. Additionally, personal exemptions, which were eliminated under the current law, may return, impacting taxable income calculations.
Child Tax Credits
The child tax credit was doubled to $2,000 per qualifying child, with an additional $500 credit for other dependents. This provision is also set to expire, potentially reducing the available credits for families.
Estate and Gift Tax Exemptions
The current estate and gift tax exemption amounts are much higher than pre-2018 levels. These exemptions are set to revert to lower amounts, which could affect estate planning strategies and increase estate tax liabilities for individuals with significant assets.
Deductions and Credits
Several deductions and credits introduced or expanded under the 2017 tax law are set to expire. These include the 20% qualified business income deduction, the higher AGI limitation for cash donations to qualified charities, and various itemized deductions. The expiration of these provisions could impact taxpayers’ ability to reduce their taxable income.
The Role of CPAs in Navigating Tax Law Changes
After the signing of the 2017 tax reform law (TCJA) changes to our tax system may occur in 2026. Here’s how our El Paso CPA team can help:
Share Expertise and Knowledge
CPAs stay updated on the latest changes and understand the implications of new tax laws. Their expertise enables them to provide accurate and timely advice to clients, helping them make informed financial decisions.
Create Tax Plans and Strategy
One of the primary roles of a CPA in El Paso is to assist clients in tax planning. They analyze the financial situation of individuals and businesses to develop tax strategies that minimize liabilities. This involves understanding deductions, credits, and other tax benefits that can reduce the amount owed.
Ensure Compliance and Reporting
CPAs prepare and file accurate tax returns, helping clients avoid penalties and audits. Similarly, CPAs also provide guidance on maintaining proper records and documentation to support tax filings.
Trusted CPAs in El Paso
Staying informed about tax law changes is crucial for effective tax planning. Marcus, Fairall, Bristol + Co., PLLC’s CPAs can help individuals and businesses navigate these changes by providing personalized advice and strategies. Call (915) 775-1040 to schedule an appointment today!