*By Carlo Versano*
For many of us, the impact of the tax overhaul that went into effect a year ago won't be felt until we file our 2018 returns. Here are some things to remember as tax season approaches (W-2s should start appearing in mailboxes in a month), courtesy of Katelynn Minott, a CPA at Bright!Tax:
2018 returns have big increases in the standard deduction, which is now:
* $12,000 for single filers
* $18,000 for heads of households
* $24,000 for married couples filing jointly
While standard deductions have roughly doubled, the personal exemption has been eliminated. That means you can no longer reduce your taxable income by the $4,050 per household member. The standard deduction increase is generally positive for single and married people, but negative for anyone with dependents.
Filers will also no longer be able to deduct costs associated with job searches and working from home, which will negatively impact freelancers and anyone who spent more than 2 percent of their adjusted gross income on job-related expenses.
The new law also makes it harder to deduct mortgage interest and property taxes.
Filers should be prepared to get acquainted with a vastly different 1040 form, Minott said. And if you had a major life event in the last 12 months ー marriage, job change, child ー don't forget to update your W-4 to reflect that change.
And if you're expecting a refund and need the cash, don't forget the IRS works on a first-come, first-serve basis after you file.
"The earlier you file, the earlier your return will come back to you," Minott said.
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Here are the headlines you Need2Know for Wednesday, July 22, 2020.
As the coronavirus pandemic drags on, a new poll from NORC at the University of Chicago finds it's having different effects on Americans’ economic well-being.
Oxford University announced that its vaccine trial with AstraZeneca is showing promising results. Congress is back in session and lawmakers are debating another stimulus package. What we know so far on the shooting of Judge Esther Salas's family. And SNL could be returning to the studio in the fall.
Former Education Secretary Margaret Spellings talks about the chaos around the issues of reopening schools amid the pandemic.
Hundreds of workers are rallying outside the Trump International Hotel in Manhattan and the Massachusetts Statehouse to protest systemic racism and economic inequality.
No one can go to concerts, so it seems they've decided to make their own music. Searches for and purchases of musical instruments and music editing software have been increasing during the coronavirus crisis.
