Tax season 2018 is nearly upon us and there will be certain changes compared to past years that you should know about.
Here are nine things you should know about filing taxes for 2017 earnings:
- Consult with professionals and double check to make sure you are not underpaying or overpaying for the prepayment of taxes.
- “Standard deductions are nearly doubling for 2018 and they’re taking away personal exemptions at $4,050 per person. So that could help some people who are middle class or low income earners who do not have dependents that they claim,” Jody Vaughn, office supervisor at Liberty Tax Service in Oregon, said.
- “For people with larger families who usually take several exemptions, they may need to work that into their withholdings if that’s going to lead to them to have more taxable income,” Vaughn added.
- The current standard deduction for a married couple is $12,700, but it increases to $24,000 in 2018.
- Those itemizing their deductions for the 2017 tax season would have to exceed the $12,700 figure to make it worthwhile.
- There’s a new maximum deduction of $10,000 for property, state, local and sales tax.
- Many tax identification numbers are set to expire this year, so those with the middle digits of 70, 71, 72 and 80 will need to renew them in the 2017 tax season in order to be current for their 2018 tax returns.
- The child tax credit went up from $1,000 to $2,00 per child, which means people with a child under age 17 will pay $2,000 less on their taxes.
- Starting in 2019, people will not have to pay a penalty for not having health insurance.