GREENSBORO, N.C. — Tax season is quickly approaching.
Despite the government shutdown, the Internal Revenue Service says, filing season will begin on January 28th.
The IRS is gearing up to process tax returns and provide refunds to taxpayers.
"We are committed to ensuring that taxpayers receive their refunds notwithstanding the government shutdown," said IRS Commissioner Chuck Rettig. "I appreciate the hard work of the employees and their commitment to the taxpayers during this period."
As you prepare for another tax season, you might want to consider learning more about the new tax laws.
President Donald Trump signed the "Tax Cuts and Jobs Act" into law back in December of 2017.
It represents the most dramatic change to the U.S. tax code in over 30 years.
The tax reform law lowered tax rates for most people.
It also nearly doubled the standard deduction and limited or discontinued many deductions, among other changes.
This is the first time taxpayers will be filing under the Tax Cuts and Jobs Act.
The new tax law changes will impact you if you own a home, currently claim any children, worked last year, carry medical expenses, and much more.
"Anybody who has children should know that the child tax credit has doubled from 1,000 to $2,000 per child," said Drennon Stringer, Master Tax Advisor at H&R Block of Greensboro. "The second big impact is going to be the standard deduction. For most people, it's doubled. It reduces the amount of taxable income that will be taxed. It generally means a larger refund or at least they owe less."
If you're a business owner, tax experts say, the new tax laws will impact you as well.
Some tax provisions were eliminated, while some increased.
"The new tax laws will impact anybody who has a small business or a business at all," said Stringer. "There's a qualified business income deduction worth 20%. It's a credit given to business owners and it's huge."
An individual taxpayer generally may deduct 20% of qualified business income from a partnership, S corporation, or sole proprietorship.
You can avoid the possibilities of a tax headache by simply collecting the necessary documents and filing early with a trusted tax professional.
"H&R Block offers clients Peace Of Mind," said Stringer. "If the IRS or any government authority disputes the way an H&R Block tax agent handles the tax return preparation, H&R Block will back it up with up to $6,000 in additional dollars for penalties, interest, and taxes."
The IRS is strongly encouraging people to file their tax returns electronically to minimize errors and for faster refunds.
The filing deadline to submit 2018 tax returns is Monday, April 15, 2019 for most taxpayers.
To learn more about how the new tax law impacts you, feel free to visit an H&R Block agent.