OKLAHOMA CITY – Tax season is just around the corner, but experts say there are a few changes that you should be prepared for before you file.
Officials say the standard deduction has nearly doubled. It is now $12,000 for single taxpayers and $24,000 for joint filers.
The Tax Policy Center estimates that 27 million fewer taxpayers will itemize deductions under the new rule.
“They’ve eliminated some of the itemized deductions we’ve had in the past, but some of the common ones are still there- mortgage interest, charitable deduction, state income tax and real estate tax. But, as you’ve mentioned, the standard deduction has doubled so it might not be necessary to itemize if your deductions don’t exceed the $24,000 limit,” said CPA Todd Pefferman, with BKD CPA’s and Advisors.
To make the most of your charitable deductions, experts suggest ‘bunching’ your deductions from two years into one.
“If your charitable deductions from one year don’t exceed the $24,000, perhaps if you doubled two years into one year, that will get you over that limit. So you’ll take the standard deduction one year, itemize the second,” Pefferman said.
Another big change for parents is the child tax credit doubles this year to $2,000 per qualifying child.
IRS’ filing season opens on Jan. 28, but experts say to be patient amid the government shutdown.