It's a new taxworld – as many will learn soon to their consternation.
The tax code passed at the end of 2017 for this year has turned the tax world upside down, with old strategies no longer valid tax pros.
"The biggest mistake people can make is to continue the old rules and strategies , Things have changed a lot, "says Jackie Perlman, senior tax researcher for H & R Block. She warns that those applying the old rules would have to pay more taxes.
Many high-tax states such as New York, New Jersey and Connecticut have long reduced their federal taxes by ignoring the standard deduction and introducing state and city taxes as well as taxes by country charging different fees, reducing their federal tax bills. Well, these taxpayers could now better use the new standard deduction, say tax professionals.
For people in high-tax countries, it used to be an easy decision to list them, says Bernard Kiely, a state-certified public accountant in Morristown, NJ
But since many of these deductions have been reduced or eliminated and the standard deduction has been greatly expanded, that is Question less easy.
Single deductions are now limited to $ 1
The Trump tax changes are almost twice the standard deduction – $ 24,000 for shared folders and $ 12,000 for individual folders. The over-65s get an extra break.
Kiely said he and his wife would "take the standard deduction. It's the first time in 15 years that we've made it.
"The big thing is that the various single-item deductions are gone for the employees," Kiely said. "So not refunded employee deductions and consultant fees are no longer deductible."
"The important thing is to do the calculation and find out how things have changed for you – and whether you should now use a standard print," says H & R Block's Perlman.