What does the new tax plan mean for South Georgians?

What does the new tax plan mean for South Georgians?
On Friday, President Trump signed the $1.5 trillion dollar tax cut into law. (Source: WALB)
On Friday, President Trump signed the $1.5 trillion dollar tax cut into law. (Source: WALB)
Mauldin & Jenkins CPA, John McDuffie (Source: WALB)
Mauldin & Jenkins CPA, John McDuffie (Source: WALB)

ALBANY, GA (WALB) - It's been three days since President Donald Trump signed what some are calling the biggest tax overhaul in 30 years.

On Friday, President Trump signed the $1.5 trillion dollar tax cut into law.

"This is basically what it is, that's your bill," President Donald Trump said to the media while signing the new tax bill into law, just two days shy of Christmas.

So what does it mean for South Georgians?

"Each one of these is 3-percent lower than what it was under the old law," said Mauldin & Jenkins CPA John McDuffie.

This means every person, single or married, will have lower tax rates.

The new seven tax brackets start as low as 10-percent if you make up to $9,525 and the highest 37-percent if your income is more than $500,000.

"Overall I think it's going to be good, Southwest Georgia, we do have a lot of poverty. I think the refundable child credit will help," McDuffie added.

Under the old law, the maximum amount of refundable child tax credit was $1,000 per child, now it's $1,400 per child.

There are two other big changes, you cannot claim a deduction for living and moving expenses.

"They're going to benefit from this tax bill that are at the lowest level of income, and obviously at the highest level of income," explained McDuffie.

Most small businesses in South Georgia are pass-through entities, where owners pay taxes on the profits at an individual rate, but next time there will be a deduction you can apply for.

"That can be up to 20 percent of the business income that effectively reduces their individual taxes," McDuffie explained.

And now that the tax bill is here, residents and business owners can plan for their future.

"It's hard to advise a business owner on how to plan if you don't know what the rules are, so I'm glad to know that we've got a tax bill," said McDuffie.

Some taxpayers can make changes before the end of 2017 to put themselves in a better position for next year.

By January, a majority of provisions will go into effect.

Many residents will see changes in their paychecks by February.

But only a few changes will apply when people file their 2017 taxes, most of the changes will be seen when you file in 2018.

For more on the tax bill click here.

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