Many people rely on their tax refunds to support themselves. Changes to federal tax laws, along with the uncertainty of the current government shutdown, have many people worrying about the state of their finances this year.
In 2019, there are many changes and provisions that will impact your refund. The largest tax overhaul in the last 30 years was signed two years ago. The Tax Cuts and Jobs Act of 2017 eliminated many deductions and tax credits people previously relied on to ensure their refunds.
OC Tax Relief can help you file your taxes to ensure you take advantage of every credit and deducible available to you. The new tax law won’t expire until the end of 2025, and every year is expected to see new cuts and changes to the system.
The Standard Deduction is Higher
The current standard deduction for single taxpayers is $12,000. Married couples will have a starting standard deduction of $24,000. Both figures are a major increase from the previous deductions of $6,350 and $13,000. The new standard deduction for anyone filing as the head of a household will be able to claim an $18,000 deductible.
Personal Exceptions Are a Thing of the Past
The new standard deduction rates are meant to offset the elimination of personal exceptions. Previously, a taxpayer could claim a $4,050 deductible for each dependent. Families will experience the greatest hit from this change, but using a service like OC Tax Relief can help you explore other options and make up for the loss.
Work Expenses and Tax Preparation Fees Are No Longer Deductible
Changes to the miscellaneous itemized deductions will have an impact on some taxpayers’ refunds. You will no longer be able to claim uncompensated work-related expenses or write off the cost of your tax preparation services.
Moving expenses will also not be eligible for deduction on 2019 tax returns.
File With the Pros to Save Money
With so many changes happening and still on the horizon, it’s best to leave your taxes to the people who make a living out of filing them. OC Tax Relief will help you get as much as you can back from the government and ensure no deduction or credit is left unclaimed.