How do tax changes affect you?

StrategyDriven Managing Your Finances Article |Tax Reform|How do tax changes affect you?Politicians of any experience and caliber love to talk about tax reform. Why should you care? As you already know, tax reform is a change in the current tax code. That includes the way taxes are collected as well as the amount of taxes you will pay. The keyword here is “you”. You are the taxpayer and therefore any change in the current taxation system will have a direct effect on you. Another reason to stay informed about any changes in the tax law is the change in the way taxes are managed and distributed after they have been collected. Your money will be managed by the local or federal government. The way it is done and the places your tax money will be designated to will have a major effect on you on many different levels. If you want to learn more about how tax changes will affect you, go to or read more below.

What are some of these effects?

If the current tax code is simplified enough, you may be able to get your own tax return done. That translates into a few hundred dollars savings annually directly to you. Being able to understand the taxation rules and regulations will give you the confidence to file on your own. If you currently hire a professional out of fear to make a costly mistake, you will be able to save that fee by doing it yourself.

The major goal of any tax reform is to improve and streamline tax collecting processes. Depending on what exactly is changed, you may see effects like lower taxes that you have to pay. As a business owner, you may experience a change in the way you can make business expense deductions. As a homeowner, you may get more or fewer rebates for energy-efficient improvements done at your house.

Tax reform would also call for language simplification when dealing with the IRS. The plain language throughout will help you understand exactly what you are dealing with.

Tax reform will provide taxpayers with the necessary tools to plan ahead. It is especially valuable for self-employed people. The current code already has some tools on how to estimate the amount you will end up paying at the end of the year. However, more improvements will allow you to estimate your tax goals. You will be able to enter your goals like “pay zero” or “get a return” and see how much you will need to put in to meet a certain goal.

Tax reform will provide you with the tools to foresee and prepare for a tax bill or avoid paying a penalty. As we know, the current IRS administration is often ineffective when helping its main customers. Most people don’t feel like figuring it all out on their own. Tax reform will provide more resources for the current IRS. As more webinars by the IRS on how to use the system become available, you will be able to use those tools and save more time and money.

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