2018 Income Tax Refund or Payment?

[kg4fxg]

USA
So with this year doing your 2018 Tax Return - Refund or Payment? Surprised?

I was told that the IRS had messed up W4 withholding. Or not modified it enough. You can Google that fact. Basically, employers passed on the tax savings via less taxes withheld in your paychecks so the refund you are expecting isn't there. Meaning you have already received it and now owe.

Might want to check on updating your W-4? However, the exemptions & allowances are gone due to the TCJA.
https://www.dontmesswithtaxes.com/2018/12/irs-issues-new-w-4-for-2019-tax-year-withholding.html

I do not want to get into a Democrats verses Republicans issue. Tax law is complex and we basically have to live with it. Careful tax planning can help. BTW, I am a CPA.

So...
Refund or Payment?
Has it created a hardship? Or, plans for the refund? Thoughts on the Tax Cuts and Job Act?

What hit me the hardest is no more deduction for unreimbursed employment expenses. Comment away!

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[xcoreflyup]

Accountant here and I focus on Internal Control. There is no surprise for me as I did my tax projection and it was accurate. Tax Cuts and Job act save me about $1000...

 

[yargk]

Umm, no option for prepared yourself with no software? It's not rocket science.

Tax Cuts and jobs act increased my taxes a lot!

 

[kg4fxg]

I would assume many do not get a refund. Companies changed rates so in effect you have been getting your refund every paycheck in 2018. If you have to pay taxes change your W-4 to claim zero.

Also
Most will find standard deduction the only option. Doubled this year for married to 24K. But no personal exemptions. That was like 4, 050 for each and multiple by two for married plus kids. Not so good. If you can't itemize you will loose several deductions:
Real Estate Taxes (Not much incentive for home ownership) and equity loans no longer deductible unless you put the money back into the house.
Charity
Car Taxes
No more 2% unreimbursed business expenses (parking, union dues, uniforms, etc.

I am surprised Charities has not put up a fight? If you Google many say make a huge contribution one year to get itemized and then none the next.
For those divorced? Alimony is now taxed by the payer (husband) and not at the lower rate the ex-wife. And because it is not income to her she can no longer have a retirement account (IRA).
Massive changes that are not permanent. All reverts back in 2025 but one tax bill could change everything. The only permanent change is lower Corporate Taxes. But again, any bill could change anything.

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