In 2019, the Americans file their first Declaration after the revision of the Tax code — the most significant since the 1980-ies. According to Donald trump, for most US citizens taxes should be greatly reduced. However, more taxpayers will be left without compensation. How so? Now a look.
What changes have occurred
IRS (IRS) adopted a constant guide to help workers and employers to determine how much money you should deduct from the salaries to the income tax paid is automatically and evenly during the year.
With the revision of the wage scale (now it starts from 10% and reaches 37% with income of about $500 thousand) and changes in benefits, deductions and credits taxpayers had to adjust the size of deductions from wages. However, most taxpayers have been puzzled about how to do it. Thus, the largest network for the sale of tools for repairing and building materials Home Depot found that only 1% of its employees reversed the hold.
What happened with the refunds
This year the IRS plans to provide refunds of 105.8 million — 2% less than in the previous (108,3 million). According to a former economist, Ministry of Finance, Ernie Tedeschi, for many taxpayers with income below $100k tax burden will be reduced due to higher compensation, while receiving a higher income tax cuts was due more increased during 2018 salaries.
Analysts expect the total payment will be slightly higher and this means that some taxpayers will get more than he was before. In particular, due to tax benefits for children, which updated the Tax code has nearly doubled.
Who ever will not receive a refund
More than 30 million Americans (21% of taxpayers) has not made sufficient deductions from wages during the year, and therefore, will have IRS, if you file returns this year, says the report of the accounting chamber of the United States. In 2018, these debtors was 18%. In other words, about 5 million people received a refund last year, in 2019 it will not receive.
How will this affect consumer spending
Analysts on wall street expect higher costs from consumers with low income who receive benefits in connection with the increased tax exemptions for children. Families with an average income, earning $55-75 million per year, will also benefit.
How to pay taxes
The lawyer Rostislav Shaposhnikov, living in the US, told USA.Onething to consider when paying taxes:
«First we need to clarify who pays taxes. If you are working as an employee under the scheme W2, then all of your taxes are deducted from salary, and at the end of the year you just submit a Declaration by downloading the program online or by submitting to the accountant his W2 and all.
If you want W2 to get a refund (for example, in connection with the mortgage, due to the presence of children or on other grounds), it is necessary to provide data to the accountant who will calculate a refund amount you are entitled to or, conversely, how much you have to pay extra (if it was paid, less than you need).
A self-employed taxpayer or a private entrepreneur (form 1099) should of your total income, subtract all the business expenses that he incurred, and with a clear profit to pay taxes. The calculation can be done online, for example using the program Turbo Tax, or by contacting an accountant. If you pre-calculate all of your expenses, the accountant, the filing process will take about an hour of time.»
