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Every year comes with new laws and amendments of the old ones. The 2017 financial year is not an exception to this rule. There is a new administration in place right now in the USA and the current president outlined his tax policies even before he won the election. It follows that you should expect income tax 2017 changes.

Now, you do not want to get on the wrong side of tax laws. Taxes are taken very seriously in the American system and the authorities do not condone tax evasion in any form. In case you are not sure of your income tax status in the new dispensation, you should consult an experienced tax attorney to put you right. Before you consult your tax attorney, you should have a number of relevant documents. This way, you make the job of the tax lawyer relatively easy.

Tax Returns
Make photocopies of your tax returns for the past two years and show them to your tax attorney. If you have a 401k plan, you can show the lawyer the relevant documents because this may have a bearing on your income tax. If you have enjoyed a tax rebate or a tax holiday in the past, you should show the documents to your tax lawyer.

PAYE Records
Income tax is based on the Pay As You Earn principle. You have a gross salary and you have deductions and a net salary. Now, you do not pay tax on your gross income. You pay taxes based on your taxable income. The taxman also considers the numbers of dependents you have and a few other factors. To find out the amount of tax you ought to pay in 2017, show your old PAYE records to your tax lawyer. If your salary has increased between 2016 and 2017, you should disclose this to your attorney.

Trust the Taxman
After you have worked out your current income tax with your lawyer, you should not go investigating the tax authorities. Your income tax 2017 may seem to be on the high side but this should not bother you because it is better to pay too much tax than to pay too little tax. If the tax authorities are deducting more money than you should pay, you will definitely get a refund later.

Tax Expert photo
Photo by “Caveman Chuck” Coker

Tax matters are not always easy to understand. Do not second-guess the tax authorities. Consult a tax lawyer and you will enjoy peace of mind.