Will big tax changes mean smaller refunds? MWE Tax Director Joseph Pizzimenti, Esq., offers Pix 11’s ‘Financial Fix’ the answer to this very important question that’s on the mind of many New Yorkers. See his response in this video clip.
From PIX11 on Vimeo
Read: Some of your deductions may be smaller (or nonexistent) when you file your 2018 tax return
Read: What Is a 1099 Form and Who Gets One?
Changes are in effect.
The changes that are affected 2018 are probably the most comprehensive set of changes that we’ve seen in over 30 years.
Joseph Pizzimenti, Director of Tax at Margolin, Winer & Evens, says these more than a dozen adjustments are all part of the Tax Cuts and Jobs Act, which was signed by President Trump at the end of 2017.
The bill includes amendments to:
- Personal Exemptions,
- State and Local Tax Deductions,
- Home Mortgage Interest,
- and Child Tax Credits.
The Eligible Child Credit has effectively doubled and now you can get a refund of up to $1,400 per child.
And now there is a $500 credit for other dependents, such as care of an elderly parents. The tax act also effected many of our pay checks. You may have noticed a slight increase this past year – it was no accident. Withholding tables have been amended.
More likely than not during 2018, you were probably having less withheld and paying less in, so therefore, you were getting a benefit throughout the year. So you’ve paid in less. That’s why your refund for your 2018 taxes may be lower.
And with rumors of lower refund checks already causing concerns, Joseph recommends being proactive. If you’d rather have a more substantial refund next year, you’ll need to talk with your employer about adjusting your current withholding status as soon as possible.