Last month, the IRS came out with two new publications that will be useful for the coming tax season.
The first is Publication 5307, “Tax Reform Basics for Individuals and Families.” This 14-page document summarizes the various changes to the tax code directly affecting individual taxpayers.
It includes a section on how to make sure you have enough taxes withheld (or pay quarterly estimates), changes to benefits to dependents, information on retirement plans and much more.
IRS also published a document called “Revenue Procedure 2018-57” (or Rev. Proc. 2018-57). This provides summaries of the new tax tables, inflation adjustments, various credits that are commonly taken, and a host of other tax topics.
It also provides the code sections where the information is located.
Between the two publications, a taxpayer can determine his adjusted gross income (AGI) and figure out which will be more beneficial, standard deduction versus itemizing.
Remember, under the new codes you can take either the standard deduction or itemize but not both. They can also determine what credits they are entitled to and the maximum amounts that can be taken.
Both publications can be found at IRS.gov. If you do not have a computer, go to the local library and use theirs.
Alternatively, contact your tax professional and ask questions.
Virginia Moryadas is a tax preparation professional in Bluffton.