Barb Stockhausen Talks Taxes

Amy Coffey and Barb Stockhausen

Fellow Optimist Barb Stockhausen talked about the tax ramifications of the “One Big Beautiful Bill” that was passed by Congress on July 3.  The bill includes some challenging changes and will require more thinking and work by the tax filer.

Whereas lots of the income data was included on the W-2, there is an expectation that the taxpayer will be more responsible for maintaining records to receive many of the credits.  The entire bill relies on the filer’s name, address, Social Security number, and filing status being cross-referenced by IRS computers to verify all data matches IRS information.

As for changes that will impact individuals, several temporary measures from the 2017 Tax Cuts and Jobs Act were made permanent.  The lower marginal rates were retained indefinitely, but the three lowest brackets will annually be adjusted for inflation.  The standard deduction was increased to $15,750 / $31,500 for single / married couples.  The child tax credit was increased to $2200 per qualifying child under 17, and those at least 65 yeas of age have a temporary $6000 deduction.

Filing is not as straight-forward as in the past, so be sure to consult tax advisors to ensure you are filing correctly.