The New Tax Laws
Our nation saw a lot of new things last year—including a new tax law. For the first time in three decades, America’s income-earners experienced the impact of the tax reform initiated in 2017. The issue has gotten some of us curious about what needs to be done as we file our taxes this season.
On December 22, 2017, Congress passed a law known as the Tax Cut and Jobs Act. Basically, the new law cuts the income tax rates of each individual, doubles the standard deduction, and eliminates personal exemption.
Another purpose of the tax reform law was to simplify the filing of taxes. For instance, the individual income tax return form or 1040 has been cut down in size.
With the changes brought about by the new tax reform law, it’s extremely important for everyone to be familiar with them to avoid encountering any problems in the future.
How the Tax Reform Act Can Affect You
Veteran Car Donations is here to explain how the new tax law can affect you and your family.
- Large Families
Large families will be adversely affected due to the elimination of personal exemptions. Even if you have plenty of kids and some seniors in your family who are dependent on you, their number may still not be enough to cover your losses.
- High-Income Earners
The tax reform may benefit most high-income earners. According to the statement of the Tax Foundation, a 2.2% increase in after-tax income awaits almost 95 percent of all high-income earners.
People who own their own businesses or are independent contractors can benefit from the 20% deduction on qualified income.
People who inherited wealth will benefit from the tax reform through the estate tax exemption.
- Tax Payers with Few Deductions
Since the standard amount of deduction has been changed, those who have fewer tax deductions can benefit in two ways: First, your tax will be reduced because of the increase in the standard deduction and; second, you can eliminate the time and effort wasted on itemizing your taxes. This doesn’t only save you time but also the trouble of finding a reputable tax adviser.
Reduce Your Taxes by Making a Vehicle Donation
Did you know that charitable contributions made to IRS-certified 501(c)3 nonprofits can significantly reduce your taxable income? When you donate a vehicle to Veterans Car Donations, you won’t only get a chance to help our heroes but also get to enjoy a maximum tax deduction on top of getting free pickup and towing services.
Your vehicle donation will help support funding for critical veteran programs. The proceeds from the sale of your donated vehicle will help our charity partners in providing needy veterans with mortgage-free and specially adapted homes, free mental health care, employment opportunities, job training, transitioning assistance, tutoring support and education scholarships, financial assistance, life skills training, counseling, and many other benefits.
You can donate to Veteran Car Donations by filling out our secure online donation form. We accept donations of nearly all types of vehicles wherever you are in the United States since we have car donation programs in all 50 states.
Help Our Veterans Today!
Are you interested in making a donation to help our struggling veterans and also yourself tax-wise? Call 877-594-5822 and rebuild the lives of our nation’s heroes with your car donation!