Illinois’ CPA Society recently released a few tips to help residents understand new changes with the new tax season underway. As you prepare your upcoming tax returns, here are a few things you should know:
New Tax Season Start Date: The IRS will begin processing tax returns on Monday, January 28th. Tax refunds will be issued on a regular schedule, despite the federal government shutdown.
New Form 1040: The IRS recently unveiled a newly designed, shorter Form 1040. Originally described as a “postcard-sized” tax form, the new Form 1040 has been shortened from 79 to 23 lines and replaces previous version of the 1040, 1040A and 1040EZ. It is important to make sure any online tax software or services are compatible with the new form. Click here for more detailed information on filing instructions.
New Tax Return Schedules: Many of the items that used to be reported on the 1040 have now moved to six new schedules that may accompany your return. Here is the update.
New Deduction Levels and Limits: While previous standard deduction levels were raised, new caps have been placed on certain itemized deductions.
The New Standard Deductions: Levels have been raised to $12,000 for individuals and $24,000 for couples. Child credits have also been raised to $2,000 per child.
New Itemized Deduction Rules: State and local tax deductions are capped at $10,000 which may be far lower than many taxpayers are used to. Miscellaneous itemized deductions can no longer be deducted.
A Certified Public Accountant (CPA) can help guide you through the new tax laws and any other questions you have this filing season. The Illinois CPA Society has a free “Find a CPA” online directory to help find a CPA near you!