Tax season is in full swing. Experts say tackling it this year could mean going through a lot of provisions that are not in effect.
“There’s been a lot of changes,” said Tom Weickgenant, IRS Enrolled Agent and CFO at Economic Strategist.
These changes are by the hundreds. Under the Tax Cuts and Jobs Act which was passed by congress in December 2017, Weickgenant says you may get a smaller refund check.
“Many people won’t itemize anymore because they’ve removed a lot of deductions. They’ve limited them, but they’ve also increased the standard deduction for married filing joint. It’s up to 24-thousand, and for single individuals it’s up to 12-thousand.” said Weickgenant.
Experts say, on one end your paycheck may seem bigger with the new tax withholding tables.
“If they are W-2 employees, their withholding went down because they’ve adjusted the tables to reflect that and so they’ll get a smaller refund but it doesn’t mean they’ve paid more in tax.” said Weickgenant.
Another big change, you can’t itemize your work expenses anymore under a W-2. That now only works with a 1099.
“That’s a big change when people have done that and they’ve itemized and they’ve had employee business, reimbursed business expenses that’s no longer a deduction for them, so now you need to make sure that gets reimbursed by your employer,” said Weickgenant, “Business and entertainment and country club dues, they are not deductible anymore at all, but business meals still are, so you need to keep those receipts and make the notes on them as to what the meeting was all about.”
Attorney Mark Deubner, Legal Council at Economic Strategist says it’s not too late to turn in any forms after you already filed your taxes.
“You can always amend a tax return but of course you are going to have a fee associated with having a professional help you if you do use a professional, so you always have to balance it out… is that fee going to offset whatever extra return I might get.” said Mark Deubner.
The filing deadline for your 2018 tax return is April 15th.