Tax Changes: How the new laws will affect your return
DAYTON, Ohio (WKEF/WRGT) - Tax season officially begins January 29 and veteran Dayton accountant Bruce Baughman says this year will be an interesting one. "There's going to be some shocked clients this year," he told ABC22/FOX45.
In 2017, President Trump signed a major tax overhaul into law, the first major overhaul in more than 30 years. The change was touted as a way to simplify the tax system, but Baughman, who's been preparing taxes for 27 years, says it may be more difficult for people to understand.
The biggest misconception, he said, is that with the simplification of the tax system, you'll get a larger return, "well, maybe not," Baughman told reporter Allen Henry.
Congress last passed an overhaul to the tax system in 1986, with the Tax Reform Act of 1986. Baughman said typically there is a major overhaul every 30 years, so he said this latest overhaul was due. The new tax law gives big cuts to corporations and wealthy Americans, but offers modest reductions to other families. Families making between $50,000 and $75,000 will get average tax cuts of $890, according to an analysis by the nonpartisan Tax Policy Center. Families making between $100,000 and $200,000 would get average tax cuts of $2,260, while families making more than $1 million would get average tax cuts of nearly $70,000, according to the analysis.
Baughman said at his office on Wayne Avenue, phones have been ringing since the new tax law passed, with people asking how it will affect them. He said yearly tweaks to tax law are not uncommon, "Congress changes laws all the time, every year we have to kind of go get trained as they say, as to what the new rules and laws are so we can benefit our clients."
So what can you expect to be different on this year's return? FOX45 will break down why your return may be less than you expect in a special report you'll only see on FOX45 News at 10. Make sure to tune in Thursday night, January 10 at 10 p.m.