There are two changes coming this tax season that you should know before filing.
Nearly 90 percent of taxpayers are expected to take the standard deduction this year, but that standard deduction has changed. The standard deduction has doubled, from $12,000 for married couples filing jointly to $24,000.
“What that means is that those folks who have traditionally itemized in the past they may not need to be itemizing this year because their deductions may not come up to the total standard deduction so that’s one of the big changes,” says Brian Mirau, the President of Capital Management in El Paso.
Another change you will see is a new filing form. The new form will replace the 1040-EZ and the 1040-A Form.
“When you file your taxes you’ll be using the new 1040 form its supposed to simplify the process and make it a little easier,” says Mirau.
As you file this year you will notice some familiar deductions and credits as well. Teachers can still deduct up to $250 for classroom supplies. Also if you are paying off a student loan you can still deduct the interest you paid up to $2,500.
The last day to file is Monday, April 15 and Mirau advises filers to not wait until the last minute to file. Also to make sure you understand the new tax law changes look at every option and decide what’s best for you.