Surprised by your 2018 tax results? A local CPA explains
Posted February 27, 2019 7:13 a.m. EST
Updated February 27, 2019 7:39 a.m. EST
Millions of Americans are surprised by their 2018 tax results. Some owe more, while others will get a bigger refund.
"This is the biggest tax law change since 1986," Ben Micham, a CPA, told WRAL News.
According to Micham, about 80 percent of people are actually saving money this year under the new tax laws.
Local residents like Robert Remington reached out to WRAL via Facebook to share their tax experience.
Remington said he's getting more refunded this year than in the past five years, while Susana Almeida-Peters said she's paying for the first time in 10 years.
Micham said employees not adjusting paycheck withholdings caused many to just break even or else owe the government money. The real winners, Micham said, are the self-employed, who have a new 20-percent deduction off net income.
"So if you're a self-employed person, and your net income is $50,000, you're going to get another $10,000 deduction on your return," said Micham.
Charles Hood of Zebulon practices with his church band friends a few nights a week. He once owned a music store, but the tax-bite played a role in its closing.
After five years as a self-employed foundation consultant, tax filing has still been rough, and he's learned his 2018 results may be different.
"It's been very difficult," said Hood. "I've heard major deductions this year, so I've got my fingers crossed. It will be nice."
Since Hood and his wife can also claim a child tax credit with 7-year-old Alex, he could be a double tax winner.
"To be honest, that sounds phenomenal compared to what it has been," said Hood.
Micham's best advice? Don't wait until the last minute to file your taxes. That's when mistakes are made that could cost you time and money.