Some taxpayers were surprised that their tax refunds this year were not as high as in years past because they had not adjusted their withholdings in response to the Tax Cuts and Jobs Act. The sweeping tax reform law that was passed at the end of 2017 should also prompt those who pay estimated quarterly taxes to revisit the amount they pay.
The tax law made several changes, including:
- Revised tax rates and brackets
- New and revised business deductions
- Limiting or discontinuing deductions
- Increasing the standard deduction
- Removing personal exemptions
- Increasing the child tax credit
Consequently, you may need to raise or lower the amount of tax you pay each quarter through estimated taxes. We will work with you to make sure you are paying the amount that makes most sense for your financial situation.
Tax reform is not the only thing that could impact your estimated quarterly tax payment. Significant changes in your business or personal life could also have an impact, such as:
- Restaurant purchases or sales;
- Major reinvestments in your restaurant or business;
- Completion of a major reinvestment project;
- Marriage or divorce;
- Death of a spouse;
- Birth or adoption of a child
Please let us know of any major life or business change so that we can continue to provide you the best business and tax planning advice.