Do You Typically Itemize Deductions?

Do You Typically Itemize Deductions?

calculatorIf you do, the IRS recommends that you review your federal withholding.  This is due to the Tax Cuts and Jobs Act passed in 2017.  This new tax law significantly increased the standard deduction.  With this change in tax law, some individuals who have previously itemized their deductions may find it beneficial to claim the standard deduction.

In addition, the new tax law limits the deduction for state and local taxes to $10,000.  Those with higher state and local income tax and property taxes may be affected.

To help determine  if your withholding should be adjusted, the IRS offers a ‘Withholding Calculator‘ to perform a ‘paycheck checkup.’

 

Helpful links:

IRS Article on this subject

IRS Video – IRS Withholding Calculator Tips

 

 

Colleen Minnich

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