It's tax time... For next tax season
Bottom Line: So about now you're thinking, whew, I'm done with taxes until next year. That may be true of filing with the IRS but you absolutely should be reevaluating your tax status in the wake of the adaptation of the Tax Cuts and Jobs Act. In any year it's always true that the earlier you begin your tax planning the more efficient you may end up being by the time it's ready to file. This year is unlike any since the advent of itemized deductions however. I've demonstrated the average full-time employed Floridian will save $1800 in federal income tax this year and that most people who've itemized their taxes traditionally will no longer need to do so any longer. If you do typically itemize your taxes have you looked into the changes and what they mean to you? If you haven't you should sooner rather than later. Not only could it save you having to keep up with documentation that you'll not end up using but you may better served by changing your federal withholding levels as well.
A Congressional Report that was just released specifically showed the impact on the group of people most likely to itemize. Those who use the mortgage interest deduction. According to the report 57% of those who used the mortgage interest deduction last year will no longer benefit by doing so going forward with the standard deduction having essentially doubled along with the limit on the State and Local Tax deduction being capped at $10,000. All told the report says that 62% fewer people will need to itemize going forward (only about 18 million tax filers). That's lower than my most recent estimates which pegged 80%+ fewer people needing to itemize but the fact remains. If you typically itemize, the odds are you no longer will need to do so and it's worth finding out exactly where you're likely to stand and make any adjustments accordingly – which might include fewer files with piles of receipts!
Btw, those most likely to no longer need to itemize are those earning between $30,000-$200,000. So, if that's you – I'm talking to you.