New Tax Rates in 2018 | Southern Minnesota

Q:  What are the new tax rates for 2018?  I heard that I’m going to have to pay more taxes.

A:  The tax rates actually went down and the brackets are now wider which means that you will pay fewer taxes while earning the same amount of money.  My one concern is that the payroll withholding tables don’t match with the income tax brackets, so I suggest that you submit a new W-4 form with 1 less exemption than you are currently claiming.  This will help with your tax return next year.  Overall you will actually owe less money in 2018 than in 2017 but you also had even less withheld during the year so you may owe more money when it comes to tax filing time.  Please check with your tax preparer, or give our office a call and we can do a tax projection for you so that you’ll know ahead of time what your taxes should be.

Taxes, Investments, Business and maybe a little more.