There’s some good news about the new tax laws!
With the recent approval of the new Tax Cuts and Jobs Act (TCJA), it’s easy to be confused about what all of these changes might mean for the individual tax payer. From Capital Gains to changes in deductions, reading the TCJA can be like trying to put together a tax puzzle.
However, there’s one portion of the new tax code that I want to bring to your attention because it can benefit you in the long run: the new withholding tables released by the US Treasury on January 11th, 2018.
According to www.IRS.gov, “The new withholding tables are designed to work with the Forms W-4 that workers have already filed with their employers to claim withholding allowances. This will minimize burden on taxpayers and employers. Employees do not have to do anything at this time.”
But what does that mean for you?
What’s exciting about this change is that the average worker will see an increase in their take-home pay…and SOON. And while it might be tempting to look at this as some fun spending money, doing that could mean you’re missing out on an even greater opportunity.
At this point, you’re accustomed to living according to a certain cash flow. So, instead of taking that money and buying a big-screen TV…why not take a significant step in your financial future?
Here are some examples.
The extra cash flow that you’re about to see in 2018 could go toward some long-term goals without changing your current standard of living! You could do things like:
- Pay down your debt
- Save for your child’s college expenses
- Make even more contributions to your retirement
What a relief!
It’s rare that you will have the opportunity to make these contributions without the benefit of a job change or raise. So, I encourage you to make the most of it by achieving the financial goals that have been on your to-do list for a while.
Think of how much better you’ll feel!
And, as always, if you have any questions, I’m here to help.
Andrea Blackwelder is a Certified Financial Planner ™ Practitioner and the co-founder of Wisdom Wealth Strategies, a fee-based financial planning and investment advisory practice. Andrea looks at your complex financial planning puzzle and assists you with the best options and financial strategies that align with your financial needs. To contact Andrea, firstname.lastname@example.org.