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KNOXVILLE, Tenn. (WATE) – Local Accountant Mary Edwards said January was the busiest part of the tax season. The stress of employment is accompanied by significant changes this year, due to the 2017 Tax Reduction and Job Creation Act.
More specifically, the doubling of the standard deduction is of concern to many of its low- and moderate-income clients, as they are no longer able to detail them.
Before, says Edwards, many of his clients could deduct their medical bills, property taxes and charitable donations.
The new standard deductions are:
$ 24,000 married couple
$ 12,000 individual
Head of household
The new deductions make impossible retailer for over 80% of US taxpayers.
Edwards believes that in the short term, people of all categories will enjoy certain benefits.
She says her high salaries are the most likely to exceed the standard deduction. Companies benefit the most because their provisions are permanent, the doubled lump sum deduction expires in 2025, says Edwards.
Brewton Couch, Vice President of Brand Strategy and Marketing for United Way of Knoxville Region, said the non-profit organization, which serves 119 programs in the Knox County area, was not experiencing still many changes due to tax changes.
Couch says that the NPO serves more than 106,000 people, that it is to help children read or put food on the table. Keeping charitable donations would mean less help for the people of Knoxville, since they give out dollars every year.
Although she thinks that the big impact could begin this year, she is optimistic and people will always give their mission.
"We are looking at all the tools and everything we can do to combat the many changes when it comes to encouraging people to give, to get involved in the community and to give back to local non-profit organizations such as ours, "she said. .
"It's a lot of worry. You have a lot of people following these articles for 20 or 30 years and when you say "it will not matter to you this year", even if double deduction covers them. still encourages a lot to bite their teeth because they are nervous. What does it mean for their tax bill at the end of the year? "
Edwards predicts that donations will go down in 2019 or people will start collecting their donations once people realize the changes they have made to detail this tax season.
She says there are ways for some people to write off charitable donations.
One of them is "bundling" gifts. For example, if you normally donated $ 10,000 a year, you could keep it, combine it with the $ 10,000 contribution in year two, and when you calculate property taxes or medical bills, you could be over the threshold.