DE PERE, Wis. (WBAY) -- While there won’t be many changes to 2017 tax filings, many are worried about the changes they’ll see when filing 2018 taxes.
Action 2 News reached out to several accounting firms on Wednesday, all saying their phones have been ringing off the hook – as clients work to understand what the new Tax Plan means.
Experts say the biggest change we’ll see will be in standard versus itemized deductions.
In the past, most of us have used itemized deductions, on things like property and income taxes, medical expenses or gifts to charity.
Right now, you use itemized deductions if they add up to more than the standard deduction of $12,700. For 2018, the standard deduction nearly doubles to $24,000 or more.
“If you’re a typical married couple, with a couple children, own a home, paying property taxes, paying interest on the home mortgage, things like that, you can get over the $12,700. Going to be hard to get over the $24,000,” says Dan Popkey, a tax preparer at Dan Popkey’s De Pere Tax. “I think the average person would be glad to take just the standard deduction. That means they have less than $24,000 worth of property tax bills and interest on the house and things like that.”
Child Tax Credit
“The child tax credit is going from $1,000 to $2,000,” Popkey says. “So I mean that's going to help anybody that's got a couple kids in school. They're going to, they'll get $2,000 per child as a credit on their tax bill.”
Popkey says that deduction could go down as your income goes up, but families can take that tax credit to help pay for schooling.
If all goes according to plan, Popkey says middle class taxes should go down, and people should see more in their paychecks, beginning in February.
"It's going to change it, more money will come back to you. They'll be less withholding from their paycheck,” he says.
But Popkey says the real test will come in 2019, when comparing the difference between 2017 and 2018 taxes.