With April here, many people are trying to wrap their heads around the most recent changes to the tax code and how it will affect them. While the majority of these changes fall on businesses, some significant modifications impact individuals. To ensure there are no surprises when filing your tax return, here’s a brief overview of what to expect.

How Will the New Code Affect Your Tax Return?

1. The Standard Deduction Has Increased

The personal exemption, which delineated how much you could deduct for yourself and any dependents you claimed, has been eliminated by new tax laws. However, the standard deduction has increased to make up for these eliminations. In the past, the standard deduction was $6,350 for single filers and $12,700 for married couples. This year, the standard deduction is $12,000 for individuals and $24,000 for couples.

2. Mileage Can No Longer Be Written Off

If you’re a full-time employee, you can no longer write off mileage on your tax return when traveling for work purposes. In the past, workers were eligible for this write-off if fuel costs exceeded 2% of their adjusted gross income, but new tax laws did away with this deduction. You can request a reimbursement from your employer, however.

3. The Child Tax Credit Has Increased

Parents or people living with other dependents can claim them at the end of the year. In the past, you could only claim $1,000 per dependent, but that figure has doubled this year. Additionally, the threshold for the income cutoff has also increased. If you’re married, phaseout begins at $400,000, while single filers can earn up to $200,000 before phaseout.

If you need help navigating these changes when preparing this year’s tax return, The Callen Accounting Group can help. Their skilled accountants provide expert financial advice and tax planning services to residents throughout Mountain Home, AR. If you’re a business owner, they also offer bookkeeping, payroll processing, and financial statement preparation. They’re dedicated to delivering reliable, personalized service so you can take advantage of every money-saving deduction you qualify for. Schedule a consultation today by calling (870) 425-6066, or visit the website to learn more about their financial services.