What’s Included in the Tax Bill?
Few details on the new Utah tax bill have been made available yet, but the tax cut for families will come in the form of a new child tax credit. Essentially, rather than earning an exemption for your dependents, you will receive an additional credit on your tax return.
Utah lawmakers voted overwhelmingly to implement this $30 million tax cut to help alleviate the strain that the recent tax reform will put on larger families—and with the largest average household size in the nation, Utah is sure to see a higher impact on families’ tax returns than most other states. While the tax cut won’t completely offset the impacts of the federal tax reform bill, lawmakers believe it will eliminate roughly 45% of the tax increase for most families.
Claiming the Child Tax Credit
We don’t yet have details on the limitations for the new child tax credit, or how to claim it on your 2018 tax return. However, we will stay up to date on this new bill and ensure that all of our clients stay informed of how these changes will impact you. Ultimately, this should be a positive thing for Utah families, and should help reduce the amount of tax you owe next year.
If you have further questions about this new Utah tax law, feel free to contact one of our CPAs here at The Accounting Guys.