TAX
Change in Total Tax by Tax Bracket 15,000
Change in Total Tax in Dollars
10,000 5,000 0 -5,000 -10,000 -15,000 -20,000 -25,000 -30,000 -35,000 10
24
15
25
28
JANUARY/FEBRUARY 2019 | NEW JERSEY CPA
33
35
39.6
subjected to tax and the decreased tax rate itself in the subsequent brackets in the new 2018 tax tables caused the reduction of taxes in every bracket except the 10-, 32- and 35-percent brackets in this analysis. There were several drivers that contributed to the changes, but for the New York metropolitan area and our clients, the largest contributor to tax savings seemed to be the new tax brackets themselves. As soon as the 20-percent small business deduction is considered, the winners in the middle to higher brackets are bound to increase. According to the data gathered thus far, our clients will not be as negatively affected as assumed since 81 percent of them achieved a median tax decrease of 12 percent. Of course, every client is different, and no two years will ever be the same. When I told one client of his personal (positive) results he stated begrudgingly, “Well, taxes in New Jersey are still too high.� That, my friend, is a different discussion. Ann-Marie Long, CPA, is a senior tax accountant at SKC & Co. CPAs, LLC. She is a member of the NJCPA and can be reached at amlong@skcandco.com.