KALISPELL - It’s officially tax season. Although the recently passed tax bill won’t take effect for this year’s season, we spoke with a tax filing company to see some of the changes we can expect to see when the bill kicks in.
Mark Robison, the owner of Liberty Tax in Kalispell who's been filing taxes in the valley for eight years, talked with MTN News about how families could see some benefits from the new tax rates next season.
“Well, it’ll be really interesting for me to see how this all pans out in real life when we do several hundred returns and I can see how people compare year over year, but it’s pretty obvious just the fact that the child tax credit is doubled, families with children is going to be very, very helpful,” said Robison.
The child tax credit pays dollar for dollar on taxes owed, which means a family with three children’s tax credit would be 3000 dollars this year, but next year that same family would have 6000 dollars’ worth of credit to pay taxes. Not only will the child tax credit double but the standard deduction as well. The deduction will increase from 6,350 to 12,000. And for married couples will increase from 12,700 to 24,000.
Liberty tax estimates 80% of taxpayers will see a tax cut under the new rates, but Robison did say it won’t affect everyone the same way.
“If this family made the national income median of 73,000 a year, their tax bill would be cut by 2059 dollars, and that’s great. It doesn’t affect everyone positively and it gets kind of complex,” Robison said.
Another big change will be for those who don’t have health insurance. You still pay the penalty for 2018 but won’t in 2019. As far as tax credits go, it looks like families will receive some help, but for the rest of the various concerns towards the new bill, we will have to wait and see how it unfolds.
Taxes are due by April 17th this year.