According to a new study, 28% of people are unsure how the tax law is different for this tax season. Are you one of them?
In 2017, a new tax law kicked off the biggest tax overhaul in approximately 30 years. Understanding the ins and outs of filing a tax return, including when is tax season, is tricky for most people in a typical year. With the changes to the tax code, there’s a new set of numbers, rules, commonly missed tax deductions, and rates to remember and understand.
A recent study from personal finance site NerdWallet checked in with taxpayers on how much they know about the updated tax law, and, for the most part, it’s not much. 28 percent of people are unsure of what exactly changed, and 48 percent don’t understand how it affects their tax brackets. In December 2018, only 51 percent of U.S. taxpayers were aware a tax bill had been signed into law at all.
To help catch everyone up, Real Simple spoke with Andrea Coombes, a tax specialist at NerdWallet, about four key things people should know about before filing their taxes. (The IRS is accepting and processing tax returns as of January 28, 2019.)
If you work with a tax professional or have an atypical tax situation, always seek professional advice before changing how you file your taxes; as Coombes says, “Everyone’s tax situation is unique.”