Top 3 Things You Need to Know about Your 2018 Taxes

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Top 3 Things You Need to Know about Your 2018 Taxes

Tax day is Monday, April 15, 2019. Are you ready for it?

While there is still time to file your taxes, things have changed for 2018 taxes that might surprise you when it’s time to file.

Here are the top three things you need to know about your 2018 taxes.

1. You probably won’t get as big a federal return as you might be expecting.

As much as you probably don’t want to hear it, it’s true.

Because of changes to the 2018 tax law, everyone contributed a little less to their federal taxes throughout the year than usual. This means that you actually got to keep more of your paycheck in 2018, though for most people it probably wasn’t enough to really notice. Because of this, you won’t be getting as large a tax return as you may hope for.

This isn’t necessarily the case with your state refund, so you may see a better return from the state than the fed.

2. The standard deduction is a lot higher.

In fact, the new tax law practically doubles the standard deduction amount. So if you file as a single or married but filing separately, you’re standard deduction will jump from $6,350 in 2017 to $12,000 for 2018. For married couples, the deduction increases from $12,700 to $24,000

These increases mean that there will be fewer people who will need to itemize their deductions, which could make your taxes a little easier to file. In conjunction, most of the tax brackets will have lower rates.

3. Say goodbye to most of your miscellaneous unreimbursed deductions.

Lots of people deduct unreimbursed employee business expenses to make back some of the money they had to put out for their jobs. This could include things like driving for your business in your personal car, job hunting costs, and union dues. Sadly, for your taxes this year, you won’t be able to deduct any of those.

Similarly, you won’t be able to deduct your investment expenses either. So no deduction for your safe deposit box rentals or your investment advisory fees.

There is one business related deduction that was saved—teachers who buy school supplies for their classrooms can deduct up to $250 on their taxes. So that’s something.

While there are a lot of other new changes to the taxes you need to file this year, these are some of the big ones you need to be aware of. Check out this article from Investopia or this one from TurboTax to get more insights into what other changes you can expect to see on your taxes for 2018.

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