The tax filing deadline is a little more than two months away — but before you head to your accountant, most people shouldn’t expect much under the recent implementations of tax laws.
Get the documents ready. Tax season is here — but as taxpayers begin their annual pilgrimage to their preparers.
The early filers, who traditionally file expecting big returns, are not too happy.
This nurse who usually gets a big return has found out that she owes taxes this year.
This year under recent tax reforms, workers brought home a little bit more per paycheck — meaning they won’t get much refund, and may actually end up owing.
The most affected would be single filers with no dependents.
“Be prepared to make sure to claim the right claim on your W4 to make sure if you don’t have dependent make it….” said Loudette Pavon. “Right now everyone is under withheld so a lot of people expect to have a lower refund because the deduction is also lower.”
As far as adding that shoes box of receipts, charity, and business expenses. There’s no need to bring out the calculator.
Small business owners will no longer be able to write off entertainment, and their meals will be limited.
There are a few breaks, some homeowners can still claim certain charitable donations.
Military and performing artists are still able to itemize — and those affected by disasters like the wildfire can write off a few expenses.
“Even though they doubled the standard deduction they take out personal exemptions to so it’s like kind of evens out so it’s not really beneficial. What I’m seeing right now is not really beneficial for everyone. So what you expect before, you expect a lot of refund for your travels, big tickets don’t expect much this year.”
With the recent government shut down and the threats of more looming shutdowns, Pavon says filers should still file early, since backlogs are expected.
“The employees of the IRS they came back on January 28th, but I guess there’s going to be a delay because they need to catch up their work and there’s going to be another shut down on Feb 15 which can cause a delay on your refund. They will come but it’s just going to be a delay.”
While the deadline to file taxes is still on April 15th, pavon says that the IRS will wave late penalties for the people who have to pay.