New laws include no taxes on tips or overtime.
SAN ANTONIO — Have you filed your taxes yet? We are halfway through this year’s tax season and many taxpayers still haven’t filed. And with multiple tax law changes in effect this year, nobody should assume their taxes will look the same as last year.
New tax changes such as deductions for tip income and overtime pay are creating a lot of confusion. That’s why tackling your taxes early, is a must.
Mark Steber, the Chief Tax Officer for Jackson Hewitt Tax Services told us, “So if you are missing that one document or even more likely, if you get some questions during your tax preparation on any of the new changes, tips, overtime, auto loan interest, state and local taxes, or what have you. (ticking clock) You still have enough time so you wouldn’t have to.”
This year there are a host of new deductions that have bever before existed like a $15,000 deduction maximum for overtime.
But how much for those making tips?
“The new tip deduction of up to $25,000 in qualifying tips that you can take as a deduction and not have to itemize. There’s not a simple place to find that, and many employers are handling it differently,” Steber said.
TurboTax has these tax tips to help make filing stress free:
- File electronically, as it is the fastest way to get a refund
- Use direct deposit for faster and more secure refunds
- Consult a professional if you have complex situations
- Report everything including all tips
- Keep daily records to ensure accurate reporting
Also check your paycheck throughout the year to ensure you aren’t under or overpaying.
“Take advantage of the time left. Get an accurate, tax return filed and the biggest refund that you can. It might take a little more effort on your part, but it is worth it,” Steber added.