New tax law means changes for your 2018 taxes

Your taxes will change in 2018 and you could see more money in your paychecks.

WEST SPRINGFIELD, Mass. (WWLP) – The tax reform bill is now a law and we are already seeing companies making some changes.

“It should be a great incentive for companies to reinvest in their employees and I think we’ve already seen that with some of the announcements that came out”, says Rick Larose, a certified public accountant and Partner at Pignatare & Sagan LLC in West Springfield.

Companies like AT&T, Comcast, Wells Fargo, and Boeing have announced that they are giving their employees bonuses because the tax bill passed.

Your personal taxes will change, too.

Political consultant Tony Cignoli told 22News there’s still a lot to be determined.

“A lot of it depends on what you make for the most part”, he says. “A lot of people are going to have to really rely on their accountants and CPA’s, experts, professionals to give them some guidance in that regard.”

If you make less than $100,000 a year, you can expect to pay less in taxes throughout the year, but still get a comparable refund to this years.

“From this year to next year the biggest difference is going to be the withholding’s in paychecks for most people who are employees”, says Larose. “They’ll probably see a little more in their paycheck every week because of the reduced tax rate.”

Critics of the bill say the bill would help the wealthy but offers little to the middle class.The Joint Committee on Taxation estimated every income group would get an average tax cut next year. The Tax Policy Center estimated 80 percent of taxpayers would see a tax cut in 2018, and 4.8% would see a tax increase.

The temporary tax breaks run out in 2027, if the breaks are not extended your taxes could go back up in 10 years.