OK, so the biggest tax overhaul since 1986 has officially been signed into law. Understandably, many taxpayers are thinking about the implications of these forthcoming changes.
Figuring out exactly how the legislation will impact each of us is going to take some time and number crunching. (One of the the more useful reads we’ve seen to date is this piece by CNN.) Of note for those of us who are caretakers, the child tax credit has doubled, and there’s a new credit for other dependents including elderly parents.
For now, what’s a savvy investor to do?
We say this a lot, and we’ll say it again: We can’t predict the future.
In the case of incoming tax law, it’s difficult to predict the exact implications on your personal or household tax liability. It might be higher or it might be lower, depending on the nuances of the legislation. What we do know is that you can keep focusing on what you can control — like investing regularly, a bit out of each paycheck, over time to help you reach your goals.
Remember, we’re here.
While we don’t provide specific tax advice (a tax pro is your best bet there), we are here to answer questions about your Ellevest account. If you’re an Ellevest client, log into your account and access the “My Ellevest Team” page. And you can contact the Ellevest Concierge Team at firstname.lastname@example.org any time.
P.S. Here’s an interesting, little-known fact:
After the law is in effect, businesses will no longer be able to write off sexual harassment settlements. (Yes, that used to be a thing.) Senator Bob Menendez of New Jersey pushed an amendment through that means companies can’t deduct costs related to such lawsuits. (Looking at the way it was written, though, some experts fear it might harm women as well — we'll see.)
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