The Taxman Blog
It’s time to start thinking about next year’s taxes, and I’ve been getting lots of questions about the new tax laws. The Trump Administration promised a tax return that would fit on a postcard. The new Form 1040 for 2018 is indeed smaller, but is it simpler?
The answer for many is no. “The new form omits a variety of popular deductions, including those for student loan interest and teaching supplies, forcing taxpayers to search for them — and tally them up — on one of six accompanying worksheets,” writes Jim Tankersley of the New York Times.
You can take a look at a draft of the new form yourself on the IRS website. At 23 lines instead of 79, it may look promising, but if you plan to itemize deductions, prepare for pages upon pages of extra searching to find the correct box.
Anxious about filing the new tax return next year? You need the Taxman now more than ever. Contact me for help understanding how your taxes will be different – let us navigate the changes so you don’t have to.
As 2018 is drawing to a close, there are a few tax-smart moves you can make to minimize what you owe in 2019. Curious what they are? Merrill-Lynch gives a good starter list, including conventional wisdom such as making more charitable donations, and maxing out your contributions to your retirement fund. Other items, such as “Decide whether itemizing is still for you,” might require you to “work closely with your tax specialist to make sure it’s the right choice, which will depend on factors ranging from your health expenses to charitable giving.”
Many of our clients are already making appointments for year-end tax planning. If you’d like a tax professional to look over your finances and give you customized recommendations before the end of the year, contact us now to schedule a meeting. We can help you determine what makes sense for your situation, help you reduce your tax bill come next year, and offer clarifications on how the new tax laws affect you.