I feel like this blog is either going to be shouted into the void or have you shaking your head because I have said these things already and you are sick of hearing them. I’m going to say them one more time, though, in the hopes that maybe it can catch someone new before going off into that void.
Simply put – next time you file your taxes, the rules are going to be different, and you should check your withholding now to know where you will stand when it comes time to file.
I am saying this based on a recent article from accountingtoday.com, where many in the tax industry speak to their concern that not enough people are doing this and some could be in for a surprise when they see their return.
I think part of this may come from politics. If someone is in favor of the basic changes that were made, they may expect positive ramifications. And with the increases in the standard deduction, this is a reasonable expectation.
But do you have children? Were you previously taking a mortgage interest deduction? Are you counting on charitable contributions still having an impact? That increased deduction is going to be a simple positive for many, but it decreases or negates the impact of other deductions. There are also other changes in the law that affect other areas of your return so that the standard deduction’s impact is lessened.
As I have also said before, tax law is complicated, and it remains complicated even under the new system. A full reporting doesn’t really fit on a postcard (and yes, I’ve said that before, too), so it’s not something that you can hope to figure out without a deep look.
So why not take that deep look? You have four months still to put yourself in a good position and know what to expect come filing time. That is time you can make work for you, but time that is continually dwindling.
A final note from this article that I want to highlight is one interviewee’s statement on how people think the rich have some secrets they use within the tax system, when really they just are better prepared and paying more attention throughout the year. This is so true that it deserves notice.
Do you want to make it feel like you aren’t paying that much in taxes? Plan throughout the year, so that you’ll know what the bill is going to be. And when you know that, you can have the proper money either taken out of your paycheck or made in quarterly payments so that the burden feels manageable.
So from here on out, I’m going to try to not mention this anymore. I have said it’s worth checking up on these things, now you can see an article where many others say the same thing, and we’re months after the passage of the Tax Cuts and Jobs Act, so you have had time to take action.
Consider this then my ‘I told you so,’ if you decide not to do a tax checkup now, so that I don’t have to say it in a few months.
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