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How to take advantage of new proposed tax code

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WEST BEND, Wis. (CBS 58) -- Experts say most people will see a tax decrease in 2018, but there are steps you can take to save more money under the new proposed tax code. 

Justin Krueger is a certified financial planner for Client First Tax Advisers in West Bend.

He says your taxes will probably be lower next year, but it's not as simple as you may have expected.

"I don't think you'll be able to file your taxes on a postcard like they were talking a couple months ago," Krueger said.

The standard deduction will nearly double for individuals and families, with some itemized deductions being removed.
So CPA Arthur Lee says if you itemized a lot, you might want to revamp how you pay.

"You really need to take a look at whether or not your itemized deductions are going to be greater than your standard deduction in 2018," Lee said.

He says if you act fast, you can prepay taxes before 2018 using deductions that are going away.

"Some opportunities may arise where you can pay those expenses in 2017 because you're not going to get those expenses in 2018."

Krueger says the child tax credit makes those with a lot of kids under 16 big winners. He says individuals without kids will stay about where they are. And because state and local deductions are decreased, people in Illinois, California and New York are tax losers.

"People in states with high property taxes because if they cap that property tax limit, they won't have enough to itemize, so they're going to probably be the losers."


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