Tax season is upon us and the questions are piling up.
You submitted in your tax tip questions and we've got the answers. CPA Terry Parker sat down with us to try and make filing your taxes easier.
1) Do the Trump tax changes affect my tax return this year?
"The vast majority of the tax changes were for 2018 and forward, so for the return you're filing now, unless you had a business that had depreciable property required late in 2017, then no, it won't have much effect on you," Parker says.
2) How will it affect my return next year?
"Vast changes for individuals in particular, you know, the itemized deductions have changed -- they've been limited or eliminated to a certain degree. The standard deductions have been increased significantly, just different. There will be different tax credits, enhanced tax credits for children, dependent children you don't get exemptions for personal exemptions going forward variety of changes," Parker says.
3) Sonja Stewart- Harper asked: Why can't a married person claim head of household? And why only if they are separated?
"The whole point of a head of household status is to give an enhanced benefit to a single parent who has a dependent child. If you are still married, then you should always use the the married filing joint rates scheduled to do that. Now, a situation may come up where you have a couple where the couple are separated and maybe they are leading toward a divorce, and if the parent has lived away from each other for more than 6 months, the last 6 months of the year and the parent in question has the dependent child living with them then you could get head of household status," he says.
4) Sonja also wanted to know: How many exception/allowances does a married couple with both people working and one child claim on a W-4?
"It depends on what your personal expenses are. If you got a home mortgage that plays into it, that means you'll have mortgage interest and property taxes. If you are very charitable you may have an exemption of charitable contributions that you give each year so it's not a black and white issue. If you are talking about somebody who uses a standard deduction you could claim one exemption for yourself, and then the higher income spouse claim one for the dependent child," Parker says.
We hoped that helped answer some of your questions, and if you have anymore send us your question you need answered this tax season at eyewitnessnews@13WMAZ.com!
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