CHARLOTTE, N.C. -- Now that we have started 2018, you might be wondering how the new Trump tax plan is going to benefit you?
So what do you need to know for the next few months, especially the upcoming tax season?
President Trump signed the $1.5 trillion in tax reform just before the end of last year, which means if you were going to make any changes, you had to get that taken care of by December 31. The two biggest things you could have done were prepaying your property taxes to avoid the $10,000 cap, but if they're lower than that, it won't matter anyway.
The other is any increase in your charitable giving, because deductions in that area are changing. The big thing — the one thing — that will affect almost everyone is how much more money you'll keep in your paycheck. That's going to affect 75-percent of the people who file taxes.
The IRS conversion tables are not out yet. Their new standards will be released sometime later in January, which will then let companies know how to adjust withholding.
Bottom line: You'll see changes, if any, in February and your tax season this year should be normal unless you made changes last year. If you didn't, don't worry, because you won't see any changes in your tax filing until 2019.
NBC Charlotte used a tax calculator put out by a major newspaper to give you a rough estimate of what you might be looking at in February. Please know, there are many variables not included in this work-up — things like 401k, health savings accounts, child care deductions, medical expenses, and mortgage interest.
Having said that, if you make between $25,000 and $75,000, your taxes should drop by $780. If you make between $100,000 and $150,000, your taxes will drop by $2,010. This calculation doesn't take into account how you file, meaning single or married, but it's an educated guess until the IRS releases those conversion tables later this month.