Filing your 2017 taxes? Experts say you should also have 2018 on your mind
President Donald Trump's tax reform is the first major change in tax laws is years.
Starting this month, people likely started to see changes on their pay checks and many more changes are on the way.
While these changes wont really impact your 2017 taxes, they will impact them next year.
You should have next year's taxes on your mind as you file this year, CPA James W. McIlrath, with Duncan, Farmer, McIlrath, Marlowe & Cole, PA, said. He suggests using this year's numbers and the changes likely for next year, and seeing how they stack up.
“I think from my experience so far this year and looking at my clients as far as where they’re at in 2017 and where they will be in 2018, if things stay the same, most people are going to be okay, they are still going to end up paying less."
There are a lot of changes coming and the impacts for everyone will be different.
"If I’m just a W-2 employee and I have the withholding and that’s my only income, it’s not going to impact me as much as if I'm on, retirement, where I'm not having necessarily retirement withholding or I have businesses or I have rental properties or I have other income that does not have withholding on it," McIlrath said.
You also should take a look at your W-4.
“Go through your calculations with this years taxes, take a look at what they will be like for next year and then if you need to change it based on what you’re seeing then you can file a new W-4," McIlrath said.
Kenneth Ferrick, accountant at M&M Tax Service in Myrtle Beach, says the biggest issues he sees people having is with their W-4.
"They come in and they owe taxes and they say, 'What, I can't afford to have more taken out of my pay because my pay is low' but at the end of the year, they come in and they owe money and they can't understand that."