Changes in Tax Deductions

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CASPER, Wyo. We asked a tax professional for the differences from 2017 to 2018.

There were a tax cut and job act passed in January 2018.

"It made some major changes, a couple of which are to the standard deduction.. so it increased the standard deduction quite a bit. For a married couple, it went from 12,600 to 24,000 for a single individual it went from 6,300 to 12,000." Explained Chuck Harkins of Grooms and Harkins, PC.

Harkins explained at the same time it eliminated the personal exemption.

Another change was an increase in the child tax credit.

Last year, it was capped at $1,000, but this year that cap is $2,000.

"A married couple with two children last year you know like I said you would get a 28,000 dollar reduction in your income, this year you're only going to get 24 you aren't going to get 28 because you don't get the personal exemptions, but you get an increased child tax credit, and so when you factor that in you're probably going to come out a little bit ahead again." Said Harkins.

The tax forms are also going to look different to us.

"It's going to be- I don't want to say more complex- but different looking and it's going to feel different for people."

Harkins said for most of us will experience some tax decreases.

He also says we need to be aware of how much we had withheld, because that will also make a difference.