BISMARCK, N.D. - Many people dread doing their taxes because of how time consuming and complicated it is.
The new tax reform is supposed to fix it. But does it?
Change is coming to the tax filing process, but will it create more work for your W-2's?
“Well like any tax reform, we jokingly call it the accountants relief act of 2017 because it always creates more work for accountants,” said John Power, CPA, certified tax strategist.
The new tax reform bill will simplify some returns and add a great deal of complexity to others.
“In North Dakota, about 80% of people don't itemize. So for those people it will probably have a moderately beneficial effect. The standard deduction doubles under the proposed bill, but we lose any personal exemption,” said Power.
Say you are a married couple filing jointly, your standard deduction goes to $24,000, but you lose about $8,000 of personal exemption. So with the new tax code you would get a net benefit of about $4,000.
“The goal of the I-R-S has been to file your tax return on a post card. You know, I think we're a long way away from that but it certainly will simplify the process for many people and they may be able to file their own tax return,” said Power
As for business owners, both small and large, things are about to get complex.
“Things like entity, class selection. Deciding what kind of entity you're going to be for tax purposes, it throws some of that upside down,” said Power.
Power says aside from that, North Dakotan business owners don't have much to worry about.
“There's a big change in corporate tax rates for large corporations but we don't have a lot of those in North Dakota. But we do have a lot of small businesses,” said Power.
As with any piece of legislation there are winners and losers. According to Power, in North Dakota there are more winners than losers in Donald Trump's tax bill.