CHARLOTTE, NC (WBTV) - A local financial planner is looking over the revamped tax code Congress recently passed.
Jim Heafner owns Heafner Financial. He has been advising clients for about 20 years. He says he has looked at the new tax bill and believes there will be some winners and some losers.
The new tax bill addresses divorce payments. Heafner says once upon a time the person who received an alimony check from their ex would have to pay taxes on it, but soon the person writing the check will have to pay the taxes. This will apply to divorces that happen at the start of 2019.
Another thing Heafner pointed out is the new tax code doubles a couple's deductions but tampered with exemptions as it relates to children.
"The exemption is $4,050 per person," Jim Heafner said, "For a married couple, $8,100 dollars of exemptions. If you have four kids, multiply that by $4,050 and that's lost money."
Another thing Heafner noticed is the change that will happen to new homeowners who will purchase a house at least $750,000 next year. Their deductions will be capped.
"They are going to be wishing for more relief," Heafner said. "They wished they could deduct all their estate income tax and their property taxes."
The expert believes the big winners in this new tax code are big corporations and small businesses. They will soon get a double digit tax cut.
Wells Fargo and Fifth Third Bank say because of the new tax law, they will give entry level employees a boost in pay. They will raise its minimum wage to $15 an hour. Wells Fargo says this applies to about 36,000 employees nationwide.
AT&T also says its employees will reap the benefits of the new tax law. The company will give more than 200,000 US employees a bonus of $1,000.
Heafner thinks that is good but doesn't believe the increase has anything to do with the revamped tax plan. He thinks the increase happened so companies can be more competitive and retain employees.
"I don't expect any extra benefits for employees at all because of this," Heafner said. "They will keep payrolls as tight as they can."
The planner believes the new tax plan will be overall good for the middle class but admits it will take time to see exactly how it will impact taxpayers' pocketbooks.