As the year winds down, the time to prepare to file taxes draws closer. The 2019 tax season is not extremely different from last year’s, but there are a few changes taxpayers should be aware of. For many, the Tax Cuts and Jobs Act of 2017 is still difficult to understand, and as it has only been in effect for one season, it’s going to take a bit of research for filers to fully understand how its changes impact their returns.
Deduction Changes
Filing 2019 tax returns, which are considered part of the 2020 tax season, will require a firm grasp on deduction limitations and changes. Maximizing refund returns means being fully aware of how different limitations and laws apply to each individual based on their income and household. State and local tax deductions have a $10,000 limit, and tax brackets have changed.
Pay Attention to Withholding Amounts
Without having enough money withheld from paychecks throughout the year, filers can find themselves facing hefty tax bills in January. In order to make sure enough money has been put aside for federal and state taxes, experts advise using the IRS tax withholding calculator.
Individuals with multiple jobs, two-income families, those who are recently married and people with children under 17 should be especially mindful of how much their job keeps for tax payments.
People in high-income brackets may also face significant charges if they aren’t withholding properly.
New Tax Forms
The 2019 1040 tax form has been simplified to reflect the 1040-EZ and 1040A. It may be beneficial to visit the official IRS website and preview the forms as a part of tax preparation. Along with the new 1040 form comes new deadlines and information requirements.
For those who need assistance downloading or filing their taxes, now is the perfect time to make an appointment with a local tax preparation company like TurboTax or H&R Block. The professional tax consultants are required to be up-to-date with all of the IRS’s policies and limitations, which will ensure that filers get the return they deserve and don’t miss out on any important savings.
File for Free
For some, the cost of paying a tax preparation service is too high of an expense. Luckily, there are free resources that can help. year, the Volunteer Income Tax Assistance program (VITA) offers free tax filing help to people who do not speak English fluently, who are disabled and those who earn less than $65,000 a year.