New Tax Laws Easier on Your Wallet - KCBD NewsChannel 11 Lubbock

1/12/03

New Tax Laws Easier on Your Wallet

Tax professional Jack Mayekawa is getting ready. "Our business will probably start picking up next week," he said.

Even though April 15th is three months away, new tax breaks are stirring early interest in potential savings.

"There are two major changes," said Mayekawa. "One is the Earned Income Credit, and the other is what they call Saver's Credit. Under the old Earned Income Credit, many families simply made too much money to qualify for the credit. This year, the IRS has created more ways to take advantage of the savings. I'll give you an example. A married couple with the grandmother living with them and, say, two children. The couples adjusted income is so high that they're not entitled to the Earned Income Credit. The grandmother works part-time earning about $5,000. She can actually claim the Earned Income Credit for the two kids. So that is a tremendous change there."

Also new this year: the Saver's Credit -- rewarding people who've been saving for retirement.

"Let's say you have $2,000 in a retirement account, and your income is on the scale where, let's say you make $29,000. You would be eligible to get 50% of that as credit," said Mayekawa.

That's a tax credit of up to $1,000. "It's an incredible savings," he said.

  • Local News on KCBD.comNewsMore>>

  • Stylist: Man with Vegas gunman's name talked concert attack

    Stylist: Man with Vegas gunman's name talked concert attack

    Wednesday, May 23 2018 12:08 PM EDT2018-05-23 16:08:03 GMT
    Thursday, May 24 2018 12:26 AM EDT2018-05-24 04:26:25 GMT
    (AP Photo/John Locher, File). FILE - In this Monday, Oct. 2, 2017 file photo, drapes billow out of broken windows at the Mandalay Bay resort and casino on the Las Vegas Strip, following a mass shooting at a music festival in Las Vegas. Police in Las Ve...(AP Photo/John Locher, File). FILE - In this Monday, Oct. 2, 2017 file photo, drapes billow out of broken windows at the Mandalay Bay resort and casino on the Las Vegas Strip, following a mass shooting at a music festival in Las Vegas. Police in Las Ve...

    Police in Las Vegas released documents Wednesday that they said contain dispatch logs and additional officer reports about the investigation into the deadliest mass shooting in modern U.S. history.

    Police in Las Vegas released documents Wednesday that they said contain dispatch logs and additional officer reports about the investigation into the deadliest mass shooting in modern U.S. history.

  • Family rejoices at finding of soldier's World War II plane

    Family rejoices at finding of soldier's World War II plane

    Wednesday, May 23 2018 7:11 PM EDT2018-05-23 23:11:49 GMT
    Thursday, May 24 2018 12:26 AM EDT2018-05-24 04:26:19 GMT
    U.S. Army B-24 bomber planes fly toward Japanese installations in the Solomon Islands on Jan. 14, 1944. (Source: AP Photo/U.S. Navy)U.S. Army B-24 bomber planes fly toward Japanese installations in the Solomon Islands on Jan. 14, 1944. (Source: AP Photo/U.S. Navy)

    When Tom Kelly's relatives got word almost 74 years to the date that his World War II B-24 bomber had finally been found a wave of exhilaration and grief washed over them.

    When Tom Kelly's relatives got word almost 74 years to the date that his World War II B-24 bomber had finally been found a wave of exhilaration and grief washed over them.

  • Judge: President can't block critics on Twitter

    Judge: President can't block critics on Twitter

    Wednesday, May 23 2018 1:43 PM EDT2018-05-23 17:43:15 GMT
    Thursday, May 24 2018 12:25 AM EDT2018-05-24 04:25:39 GMT
    A federal judge in New York says President Donald Trump cannot block his critics on Twitter without violating the First Amendment. (Source: CNN)A federal judge in New York says President Donald Trump cannot block his critics on Twitter without violating the First Amendment. (Source: CNN)

    A federal judge in New York says President Donald Trump cannot block his critics on Twitter without violating the First Amendment.

    A federal judge in New York says President Donald Trump cannot block his critics on Twitter without violating the First Amendment.

Powered by Frankly