As the April 15th 2019 deadline approaches for filing 2018 tax returns, there are several changes that will affect your tax refund, what you need to pay, or what you claim. These changes listed below are only some of those instituted, and their effect on each situation may differ. Please note I am not a tax advisor. I suggest you consult with your tax advisor on questions related to your specific circumstances.
The first change to discuss is the downward adjustment of tax brackets for most filers. The good thing about this change is that you can expect to owe less in federal taxes. The potential negative is that sometimes if you did not adjust your federal withholding early in the year you may owe more than you expect if you did not pay enough under the new rules.
The second change to discuss is that the Standard Deduction was almost doubled making it an attractive option to use for many filers. Using the standard deduction eliminates the need for you to itemize expenses. As a trade off some deductions that could be claimed in the past were eliminated or reduced.
Changes to deductions for 2018:
If you have not filed your taxes yet, you should be ready to see changes that you are not used to seeing, and hopefully more money will be returned to you than expected due to the changes.