Will You Be Paying More this Tax Season?
on Tuesday, 26 February 2019. Posted in Doctor of Fitness
“The hardest thing to understand in the world is the income tax.”
— Albert Einstein
Taxes aren’t the easiest thing in the world to comprehend, even for arguably the twentieth-century’s greatest mind. There’s no doubt your tax forms can be difficult and sometimes frustrating, and the confusion is simply magnified by the changes made by the Tax Cuts and Jobs Act, passed into law last December.
While they may wonder what goes on what form or whether they qualify for a particular credit, the question most taxpayers will be asking is pretty simple: Will I have to pay more this year? The answer is… well, it depends. Generally speaking, most taxpayers can expect a smaller tax bill and a larger refund this year, but a lot of it will depend on the particular circumstances.
Those most at risk for having to pay more include homeowners in high-tax states who are used to itemizing their state and local taxes. The new tax law effectively capped this deduction (known as SALT) at $10,000. Another group that will likely see their tax bills increase are sales people and many overnight truckers, who typically report a large amount of unreimbursed business expenses. With the elimination of personal exemptions, those without dependents may also be paying a larger chunk to Uncle Sam.
As always, consult your tax professional if you fall into any of these groups or have questions about how the new tax laws may affect you.