What Mainers Can Expect From Trump’s Changes To The Tax Code

Mainers preparing their 2018 taxes are finding out just how President Donald Trump administration’s Tax Cuts and Jobs Act is affecting them in its inaugural year, and not everyone is happy. While some provisions of the act are helping households with a higher child tax credit, many workers who previously could deduct gas and other expenses not reimbursed by their companies are paying higher taxes because that deduction went away in 2018. So while the act did give taxpayers a tax break, other provisions within the code changes that took effect in 2018 removed valuable deductions, including interest from home equity loans not used primarily for home improvements. This year, more than others, the amount of taxes due or to be refunded at the end of their tax return has taxpayers scratching their heads. “Just because you have less of a refund doesn’t mean you were taxed more,” said Hilary Clark, staff accountant with CPA firm Edwards, Faust & Smith in Bangor. Clark said some of the biggest benefits for most individuals in the new tax law are: — An almost doubling of the standard deduction. — Increased tax credits for those with children or taking care of a disabled parent. — Reduction of every tax bracket except the lowest 10 percent to 12 percent tax rate on income up to $9,325.