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Navigating the Latest Tax Law Changes: Common Mistakes to Avoid
by Cinthya Powell | December 1, 2024
The tax landscape is constantly evolving, with new laws and regulations being introduced each year. Staying informed about the latest tax law changes is crucial for individuals and businesses alike. In this blog post, we'll discuss some of the recent tax law changes and common tax mistakes to avoid.
Recent Tax Law Changes
The Tax Cuts and Jobs Act of 2017 significantly impacted both individual and business taxes. While some of the provisions have expired, others remain in effect. Here are some key changes to be aware of:- Individual Tax Rates: The Tax Cuts and Jobs Act temporarily lowered individual income tax rates. However, these rates have since reverted to pre-TCJA levels.
- Standard Deduction: The standard deduction was significantly increased, affecting many taxpayers' tax liability.
- State and Local Tax Deduction (SALT) Limit: The SALT deduction was limited to $10,000 per year.
- Child Tax Credit: The Child Tax Credit was temporarily expanded, but these changes have expired.
Common Tax Mistakes to Avoid
Even with the best intentions, it's easy to make mistakes on your tax return. Here are some common tax mistakes to avoid:- Failing to Report All Income: Ensure that you report all income, including income from side hustles, investments, and other sources.
- Claiming Incorrect Deductions: Only claim deductions that are legitimate and supported by documentation.
- Missing Deadlines: Missing tax deadlines can result in penalties and interest.
- Not Keeping Good Records: Maintain accurate and organized records of all your financial transactions.
- Ignoring Tax Changes: Stay informed about the latest tax laws and regulations.
- Making Errors on Your Tax Return: Double-check your return for accuracy and consider using tax software to minimize errors.
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