It will be the first year that taxpayers file returns under the sweeping new tax laws pushed through by President Donald Trump’s administration.
Because the new law reduced tax rates, some people may think they’ll see more cash at tax time, said Lisa Greene-Lewis, a CPA and tax expert at TurboTax. But for many, it already showed up during the year in the form of bigger paychecks. Thanks to that and other changes in the law, they may not get the refund they are used to.
Another big change: the new law nearly doubles the standard deduction and limits a number of common itemized deductions many people took in past years. TurboTax estimates that nearly 90 percent of taxpayers will now take the higher standard deduction, up from 70 percent last year.
Generally speaking, the law reduced the tax burden on the wealthiest Americans, while making more modest tax reductions for most others.