How does the GOP Tax Plan impact you? Local accountants break it down
MILWAUKEE, WI (WDJT) -- At Karl Klein's downtown Milwaukee office, phones have been ringing off the hook since Wednesday morning.
From small business owners, to single students, everyone has the same question: How will the GOP tax plan impact me?
"It’s a huge tax bill," says Klein. "The tax code is 70,000 pages long, and this effects a lot of it.”
The $1.5 trillion package will not go into effect next year, but Klein says there are things people need to know right now.
Specifically, beginning in 2018, state and local taxes, like deductions for property taxes, will have a $10,000 cap.
Klein says that means you need to pay them now.
"Everyone in Wisconsin definitely should try to pay your property taxes before the end of the year, and definitely, definitely pay your estimated state taxes. Any state taxes get them in now, because next year's got the $10,000 cap.
Klein says people who typically submit itemized deductions will want to check their numbers closely in 2018. That's because the standard deduction has essentially doubled, from $6,350 for a single filer, to $12,000. For married couples filing jointly. it's increasing from $12,700 to $24,000.
"A Lot of people won't need to itemize anymore, but those that do, it's going to be more complicated."