Can you believe that it’s March? Not only is the year flying by, but that means we’re in the middle of tax season too. If you have been waiting to file your taxes, don’t! Now is the best time to head online and file so that you get your tax refund as soon as possible…you know what they say, the early bird gets the worm.
If you’re ready to get this (tax) party started, we want to fill you in on a couple of key details you need to know as you begin to file. As you likely already know, the new tax law passed in December 2017 changed several key tax provisions for taxpayers and families. If you already knew this, you may now be wondering what these changes mean for your taxes and how it’s going to impact your tax refund.
Well, look no further! We’ve compiled three key tax reform tips that will help you navigate these changes and make your filing process easy and stress-free.
- Take the tax deductions that benefit you. Under the new tax law, the standard deduction amount has increased to $12,000 single and $24,000 married filing jointly. You may benefit from taking the standard deduction if the new standard deduction amount for your filing status is now more than your itemized tax deductions. In fact, TurboTax estimates that nearly 90% of taxpayers will now take the higher standard deduction, up from about 70% in previous years.
- Claim tax benefits for your kids. It is true that the dependent exemption of $4,150 was eliminated, but you can still claim your dependent children under 17 and take the Child Tax Credit which increased to $2,000. If you have kids 17 and over you can claim the new additional credit for non-children worth up to $500. Don’t forget that you can still claim the Child and Dependent Care Credit of up to $1,050 for one child and up to $2,100 for two or more kids if you paid for child care for your kids under 13(no age limit if they are disabled). You also may be eligible for the Earned Income Tax Credit of up to $6,431 for three or more kids.
- TurboTax has free Tax Reform guidance. When you use TurboTax, you will get free tax reform guidance so you know up front if you benefit from claiming the standard deduction or itemized deductions. You will also know how your tax outcome has changed under the new tax law with easy-to-understand explanations and year-over-year comparisons.
Don’t worry about knowing the new tax laws. TurboTax has you covered and will ask you simple questions about you and give you the tax deductions and credits you are eligible for based on your answers. If you have questions while you are doing your taxes, you can connect live via one-way video to a TurboTax Live CPA or Enrolled Agent with an average of 15 years experience to get your tax questions answered from the comfort of your home. A TurboTax Live CPA or Enrolled Agent can also review, sign, and file your tax return.