Will the new tax reform affect me as a musician?
This week has been a big one here in the US with the tax reform votes, and while we're all anxious to see what this means for a number of areas of our lives, I wanted to do a quick blog based on some fantastic information I read this morning.
Scott from www.financeformusicians.com wrote an awesome blog about specific changes to the bill which will affect those of us in the music industry, and not only do I want to share this with you all, I want to encourage you to get ahead of this now.
Scott's information is wonderful, and as a financial advisor and concertising trombonist, its safe to say that his knowledge of both sides of this is personally gained and well understood.
Before you read his blog (which you absolutely should), let me just say that even though we do not know the specifics about how this tax reform will come down, it will start affecting you come January 1, 2018.
Your taxes for the 2017 year will be filed in April of 2018, but your 2018 taxes will be filed in April 2019 (and will be the first impacted by these changes). So, please don't wait to learn how you can ensure you know all that you can about how your jobs and businesses will be changed.
Some information that I have found on this reform includes:
- The standard deduction is doubled from $6,350 for a single/ $12,700 if married to $12,000/$24,000.
- Deductions for personal exemptions are repealed, but the child tax credit is increased from $1,000 to $2,000.
- Many popular itemized deductions -- state and local income taxes, casualty losses, and unreimbursed employee expenses, mileage, supplies/sheet music purchases, professional memberships are gone.
As I mentioned, Scott's article is definitely the place to go to really learn about all of this, and you can find this here
I am going to continue to learn as much as I can about this, and if the bill does pass, I plan to update you with some helpful information on what you can do to ensure you're appropriately informed on the changes.
Don't wait to educate yourself though - get out there and find information!!!