If you have questions about a Trump tax plan loophole, you should contact an experienced attorney from Sodowsky Law Firm. We can guide you through an array of IRS tax problems and help you understand your rights under the law. Call us today at 703-505-4003.
How the Trump Tax Plan Loophole May Impact You
There has been a lot of controversy surrounding recent changes in the federal tax plan. Trump announced that the plan will simplify taxes for most Americans and provide tax cuts to those who need it most. However, there has been much confusion about what exactly the Trump tax plan can do for the average American.
There are many Trump tax plan loopholes that will impact Americans at all income levels, small businesses, and corporations. Some changes in the way income is taxed as well as new credits and deductions will greatly impact the way taxes are filed for most Americans.
Ways the Trump Tax Plan May Help High Earners and Corporations
Trump has been long regarded as working to help the wealthy and corporations. His tax plan does this in several ways, including the following:
- A significant Trump tax plan loophole provides a lower tax rate for corporations. Currently, corporations pay around 35 percent in taxes. However, under the new plan, they would only pay 20 percent. Trump and others claim that this will encourage a trickle down effect, where corporations provide higher wages and more benefits to employees due to their tax cuts.
- The tax plan will do away with the alternative minimum tax. This Trump tax plan loophole will reduce taxes on many higher-income tax payers.
- In a significant windfall for wealthy families, the estate tax limit will be doubled to $10 million and then phased out over a period of six years. This Trump tax plan loophole will greatly benefit families dealing with estate taxes that may have significantly impacted their inheritance prior to the new plan.
- The top income tax bracket will be limited to 39.6 percent, which will benefit the country’s highest earners who were subject to greater rates previously.
Ways the Trump Tax Plan May Help Lower Earners and Families
Although the Trump tax plan is set to help high earners and large companies, it may also benefit the average American. Those who are lower earners, the middle class, and families may be impacted in the following ways:
- Instead of seven tax brackets, there will only be four – 12 percent, 25 percent, 35 percent, and 39.6 percent. However, one Trump tax plan loophole will allow the lowest income Americans to continue paying 0 percent. This also benefits high earners, who will not have to pay more than 39.6 percent.
- Standard deduction for individuals would nearly double to $12,000 for individuals and $24,000 for married couples. This Trump tax plan loophole will benefit nearly all Americans.
- The Trump tax plan will also increase the child tax credit from $1,000 to $1,600 per child. There will be restrictions on this tax credit; however, families should benefit.
- Non-child dependents may be eligible for a $300 credit. Non-child dependents may include adults who live with heads of households and even spouses.
A Tax Attorney Can Answer Your Questions
The new tax plan is much different than what has been in place. You may have questions about how new laws will impact you. Please contact an experienced tax attorney at Sodowsky Law Firm today at 703-505-4003 to ask questions about a Trump tax plan loophole.