MIDLAND, TX (KWES) - A new year means a fresh start, that also includes the new tax bill that goes into effect Monday. It's being called one of the biggest tax code changes in decades. So what does that mean for Texans? Financial experts said it's helping more people than you think.
"One of the most interesting things of the change is only 18% of people see it as favorable when about 80% of people are going to receive benefits," said Mickey Cargile with Cargile Investment Management. "The other side the opposition party has done a great job at putting misinformation about the changes. But for most people, this is a win."
How much relief the new tax bill is bringing depends on how much you earn, how many kids you have, or whether you use certain deductions.
Cargile says the new bill is a win for many Texans, working families and businesses. Families on average making $75,000 of a combined income will save $2,000 a year. That's because under the new tax bill, the standard deduction is being doubled so families will get a tax break.
"If you had to itemize in the past, you probably will not going forward. most people will not itemize anymore," said Cargile. "So you'll lose your ability to itemize but the trade-off is you have a higher standard deduction, so because of that, you'll end up saving about $2,000 a year that you were paying before."
The new law puts a $10,000 cap on state and local tax deductions, which affects homeowners in high-tax states like California and New York because they'll be paying more in taxes.
"We've been subsidizing them in Texas for many years so now it's nice that there'll be a more equitable share for the total tax burden," said Cargile.
As for most of us in the Lone Star state, experts said the new law is a positive start to the new year.
"I think overall it's a tax change that's very good for Texans and very good for West Texans," said Cargile.