LANSING, Mich. — The new tax law means more than just a little extra money in our paychecks in recent months. It may dramatically change the way you file your taxes in the next few weeks. Consumer reporter John Matarese shows some of the issues you may run into, so you don't waste your money.
As you start working on your taxes this year, you'll notice a lot of changes. Forms are simpler and many people will no longer have to itemize, saving time. But you'll also find a lot of things you can no longer deduct.
Are you one off the millions of people who donated cash or clothing at the end of December? There’s a good chance you wont be able to deduct it anymore, because the new tax law makes itemizing no longer worth it for most taxpayers.
But don't worry: turbo tax says while many popular deductions --like charity donations and tax prep fees will be gone for most of us, your tax bill should still be lower. It says lower tax brackets mean 80 percent of us will owe less than last year.
Turbo tax claims the average filer will pay $700 to $1,000 less to Uncle Sam. But from the doesn't that stink file why some homeowners will pay more, perhaps a lot more on April 15th. It’s because the state and local tax deduction is limited to just 10,000 dollars from now on.
If you own a home in a high tax community, paying 15 thousand a year in taxes you'll say doesn't that stink? Your home deduction will be trimmed but you won’t know how you fare until you file. Confusing? Sure, that’s why this year could be the best in a long time to speak with a tax pro.
That way you don’t miss any deductions and you don’t waste your money.