You might be one of the many people who look forward to calculating their taxes, watching that little ticker in the corner slowly increase as you enter deductions and other credits. This year, though, that ticker was more stubborn, and it’s not just a miscalculation. In fact, most people in the United States are finding their refunds are smaller than normal. This can be a challenge for people who have planned to use their refunds to pay for renovations or other larger expenses.
If you’re one of those puzzling over your tax preparation in Des Moines, IA, read on for a bit more information on why your tax refund might not look as healthy as normal:
- No $4,100 personal exemption: Until this year, taxpayers could file for a personal exemption of nearly $4,100 per person, including the taxpayer’s spouse and children. Now this has disappeared, and it means that your taxable income will remain a larger number.
- Limited property tax deductions: Taxpayers who lived in communities with higher taxes and who had homes valued at more than $300,000 used to be able to deduct $15,000 or more from their local and state taxes. Beginning with this year, however, there is a lower limit on those deductions: $10,000.
- Less money withheld: One of the biggest changes has been that the IRS lowered tax rates in February 2018. Your paychecks probably increased at that time, both from the lowered rates but also because the government adjusted the amount it withheld from the paycheck. This makes it easier to live on a monthly basis, because you have more spending cash with each check, but it could have complicated things for some. If you didn’t realize this, you might have figured you were still keeping that money aside and expecting it would come back in April. This has been the change that surprised Americans the most.
- Why did some people get more? Though most people are seeing lower refunds for the reasons noted above, a smaller percentage of taxpayers have noticed an increase. Most of these people have simple returns and have filed for the standard deduction, which increased a lot this year, to $12,000 for individuals and $24,000 for married couples filing jointly.
Navigating the world of tax preparation in Des Moines, IA can be tricky, and it’s important to find tax professionals who will make sure you file correctly without leaving any money on the table. If you’re in need of help with your taxes, look no further than Accounting & Tax Professionals, PLC, a firm that has served clients in the state of Iowa for over 20 years. Our locally owned and operated business puts its focus on helping members of our community get the best tax services around.
Since 1997, Accounting & Tax Professionals, PLC has handled every aspect of tax services, including tax resolution, tax audit representation, small business accounting, notary services and regular tax preparation. Call today to find out more about our services and what we can do for you!