There have been many days since the new tax plan has been put into effect. However, there are still out there who are not aware of it. It's been more than two years since it has been here. So, in this blog, we are going to cover some of the essential points we wanted to talk about. One more thing, we will discuss it with an investor. If you are an investor, then using a tax calculator would be a good idea. Now, let's see what changes were made. The following things we are going to tell be has already effect in 2018. We are merely brushing up on it for you.

There Will Be No deducting from Investment expenses

The first thing is there will be no deduction From the trustee fee, Union dues, Safe- deposit box, Tax- preparation fees, and investment fees and expenses. You may think they are not necessary, but they could cover up to 2% of your gross income. So now, you won't have to pay for it. You are thus saving all of it. People who make money on a commission-based brokerage account will benefit more from it. Since there is no deduction on advising fees, the commission-based trading account will see more action.

The 401(K) Loan Payback

In case something terrible happens, and you lost your job. It will be easy to pay your unpaid 401(K) Loans. As per the old rules, if you lose your job, you had to pay the loan within 60 Days. If you were not, well, then there was a 10% penalty on it. But the new rules state there will be tax filing deadline to pay the loan back.

The Roth IRA

Whenever people had to change their Traditional IRA into a Roth IRA, they had filed the tax deadline for it. If you had converted any money, you could reserve back the decisions. People would do this when they had seen a loss in their investment. However, now you can not characterize it.

The Children’s tax is changed

As per previous tax rules, Children did not have to pay taxes if their income were up to $2100. But now new rules have been in effect, it changes. Now there are no taxes for income up to $2600, 15% from $2,600 to $12,700 and 20% above $12,700.

So, these are some of the updates you needed to know. If you wanted to calculator new rates, well use a tax calculator for better accuracy. In the next blog, we will tell you about more.

For more info, you can visit us at - https://www.all-taxcalculator.com/