There are changes to both state and federal taxes, but the 2018 tax reform boasts the largest and most significant changes in over 30 years. To ensure you maximize your tax benefits and are in full compliance with the Tax Cuts and Jobs Bill working with a Stone Mountain and Atlanta area accountant is a must. It’s simply too complex to go it alone.

I Thought The Tax Changes Are Only For Large Corporations?
There is a misconception that the 2018 tax reform doesn’t affect small and mid-sized businesses. While you may not have as many changes to adjust to as a larger business it impacts almost all business owners. Ideally, you have been working with your NTRC accountant since the first quarter of 2018. While the sooner the better is ideal for tax planning it certainly isn’t too late to get started.

How Will The Tax Reform Affect Your SMB?
The biggest impact is seen by S corporations, partnerships and sole proprietors who will now receive a flat-rate 21% pass-through tax rate. This is beneficial since the businesses expenses or revenues are passed through to the owner’s personal tax return and rates.

C corporations will now pay a lower 20% tax rate if within the qualifying thresholds. If your taxable income after adjustments and deductions is less than $157,000 for singles and $315,000 for married couples and joint filing then there is no limitation on the new 20% rate. If your income is over this threshold there are some restrictions apply.

How Do The New Tax Laws Impact Professional Service Providers?
Your income is not the only qualifying factor for the 2018 tax law changes, but also the type of business you operate. For example, the thresholds vary greatly for professional service providers such as doctors, nurses, consultants, lawyers, artists, athletes or anyone who provides a service as their primary asset. These businesses are excluded from some of the tax breaks as they typically have fewer employees and a higher income.

Even if you are excellent with numbers and typically do your accounting yourself, we urge you to reach out to the team at NTRC Tax and Finance to ensure you track, plan, and spend your finances for maximum tax benefit. Reach out today to schedule your free 15-minute tax consultation!

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