In 2018, most tax rates across the country were reduced, which means, you could be paying less taxes this year.
“It’s the greatest change to the IRS code in probably 25-30 years,” said Rick Mallory, Director for the Volunteer Income Tax Assistance Program at the Clinch Valley Community Action.
As a tax payer, you have the choice to claim itemized deductions, which means picking your eligible expenses to claim on federal income tax returns. Or you can claim standard deductions, a flat amount that the tax system lets you deduct.
The Tax Cuts and Jobs Act has nearly doubled standard deductions, which could reduce the amount of income you’re being taxed on.
The IRS says most people choose to claim standard deductions and they’re expecting even more people to follow suit.
Additional changes this year include suspension of personal exemptions, an increase in the child tax credit and limiting or discontinuing of certain deductions.
For more information about these tax changes, visit the IRS website.