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The 2018 Tax Cuts and Jobs Act impacted virtually every single American — representing the largest change to the U.S. tax code in 30 years. And while the sheer magnitude of the change was unnerving, it quickly turned into a political football. Looking back on the first year, the effects were overall very positive.
The Urban-Brookings Tax Policy Center, an independent, non-partisan group that analyzes tax policy nationwide, reports that 65% of American households paid less in taxes, 6% paid more and the rest paid about the same. An internal review of our clients’ performance mirrored those national statistics and also shined a bright light on one category — 90% of small businesses made more and paid less in taxes. Those tax savings are often reinvested through job creation, expansion of employee benefits and real estate investments. And I’ve also seen our clients increase their contributions to retirement and college savings accounts.
But we also know that because the tax law is quite complicated, many aren’t taking full advantage of the changes.
It took our CPAs and accounting team months to fully learn and understand the intricacies of the tax change, so consider this an overview.
Save yourself countless hours reading tax law — it’s really rather tedious — and call your accountant to review your position and get ready for tax season. It’s just around the corner.
Tabitha Swanson founded Westbrook-based accounting firm Swanson Group in 2012. She can be reached at tabitha@yourmainecpa.com.
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Learn moreThe Giving Guide helps nonprofits have the opportunity to showcase and differentiate their organizations so that businesses better understand how they can contribute to a nonprofit’s mission and work.
Work for ME is a workforce development tool to help Maine’s employers target Maine’s emerging workforce. Work for ME highlights each industry, its impact on Maine’s economy, the jobs available to entry-level workers, the training and education needed to get a career started.
This special publication examines the innovation infrastructure in Maine and the resources available to help entrepreneurs at the various stages of their journey.
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