What You May Expect When Filing Taxes This Year

January 30, 2019

© Sparkia | Dreamstime

Employers must have your W-2 forms to you for the 2018 tax year by tomorrow and with last year’s tax changes, there is a lot of anticipation as to how your refund will be affected. While you might expect a larger refund than normal. But that won’t necessarily be the case. While refunds will be larger than last year’s on average, the size is “unusually uncertain” because of the tax law changes. It depends on your personal situation. And, specifically, how much of your tax cut you’ve already received via slightly larger paychecks in 2018. For instance, take two people who each got a $500 overall tax cut and typically have received a $2,000 refund in years past.  Person "A" had $25 less in federal taxes taken out of their final 20 paychecks of the year due to the changes the withholding tables. So, person "A" got their $500 tax cut during 2018 and should get the same $2,000 refund she did last year. Person "B" is self-employed and thus didn’t have any change in their paycheck withholding. Person "B" also didn’t change their quarterly estimated-tax payments, which means their refund should be $2,500, up from the previous year. It’s also possible that you could owe money and penalties when you normally wouldn’t, especially if you itemized deductions, which many were removed last year. The only true way to see the tax differences is to compare your 2017 return with the 2018 filing. Also be aweare the tax forms have changed too.  Gone are th 1040A and 1040EZ forms. 

SOURCE: Lifehacker

See and hear more from the 98.5 KTK Morning Show

98.5 KTK Morning Show Podcast