Trump Tax Plan

Cook & Co.
Tax Advisors

woman holding out hand presenting information

2018 Taxes under the Trump Tax Plan and Fake News

Many clients tell me they have been worried about the potential outcome of filing their taxes this year because of the news they've heard about people's refunds being less, or worse yet, going from a refund to owing additional taxes.

A lady that had an appointment this morning was very worried that she would owe when she came in. It turned out that she got a $5,000 refund! This was after her tax withheld had gone down by $5,000 from the previous year. Her 2018 refund was still $3,000 more than the prior year.

The best advice I can give you is this. "Do not postpone scheduling your appointment and sit at home worrying needlessly."

The changes in the new tax code affects people differently. Everyone's circumstances are different. Horror stories spread quicker than happy stories.

Don't get me wrong, some people will fair worse under these tax changes, but the percentage that are worse off under the Trump Tax Plan should be far less than the news media has portrayed. And if they are worse off, there is a very specific reason.

For example, people who routinely pay more than $10,000 in property taxes and state income taxes may have their deduction limited to $10,000. People who have home mortgages more than $750,000 may see their mortgage interest deduction limited. And taxpayers who have been deducting employee business expenses may lose that deduction on their federal return, but will still be entitled to it on their Alabama return.