Several major changes to the tax law system are expected to affect taxpayers’ tax liabilities and refunds. Those changes include:
- Lower income tax rates
- Increased child tax credit
- Increased standard deduction
- Elimination of the personal exemption
- Restrictions to itemized deductions
- Elimination of miscellaneous deductions
- $10,000 limit to state and local tax deduction
- 20% pass-through deduction for small businesses and the self-employed
Depending on your individual tax situation, these changes could increase your refund. There are fewer itemized deductions under the TCJA, but the new, increased standard deduction and child tax credit could offset those losses.
To estimate how your refund after tax reform will compare with last year’s refund, use the Refund Calculator by clicking here.