What Will My Tax Return Be 2018

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What Will My Tax Return Be in 2018?

As the new year approaches, many individuals start to wonder what their tax return will be for the upcoming year. While it is impossible to predict the exact amount without knowing specific financial details, there are several factors that can help give you an estimate. In this article, we will discuss some of the key elements that can affect your tax return in 2018.

1. Income: Your income is one of the major factors that determine your tax liability. If you have a higher income, your tax return will generally be lower compared to someone with a lower income.

2. Filing Status: Your filing status, whether it’s single, married filing jointly, married filing separately, or head of household, can significantly impact your tax return. Different filing statuses have different tax brackets and deductions available to them.

3. Deductions and Credits: Various deductions and credits can lower your taxable income and increase your tax refund. These may include mortgage interest, student loan interest, medical expenses, and childcare expenses, among others.

4. Tax Withholdings: The amount of taxes withheld from your paycheck throughout the year can affect your tax return. If you had too much withheld, you may receive a larger refund. On the other hand, if you had too little withheld, you may owe money to the IRS.

5. Changes in Tax Laws: The tax laws for 2018 have undergone significant changes, including adjustments to tax brackets, standard deductions, and exemptions. These changes can impact your tax return compared to previous years.

6. Retirement Contributions: Contributing to retirement accounts like a 401(k) or an IRA can reduce your taxable income. This reduction can increase your tax return, especially if you maximize contributions.

7. Dependents: If you have dependents, you may be eligible for additional deductions and credits, such as the Child Tax Credit and the Earned Income Credit. These can significantly impact the amount of your tax return.

8. Side Income and Self-Employment: If you have side income or are self-employed, you may have different tax obligations. Self-employment taxes and additional reporting requirements can affect your tax return.

FAQs:

1. How can I estimate my tax return?
To estimate your tax return, you can use online tax calculators or consult with a tax professional. They will take into account your income, deductions, credits, and other relevant factors to give you a rough estimate.

2. Will the recent tax law changes affect my tax return?
Yes, the recent tax law changes can impact your tax return. It is important to stay informed about the changes and consult with a tax professional to understand how they may affect you.

3. Can I claim deductions if I take the standard deduction?
No, if you choose to take the standard deduction, you cannot claim additional itemized deductions. However, the standard deduction has been increased under the new tax law, which may be beneficial for many taxpayers.

4. How long will it take to receive my tax return?
The average processing time for a tax return is about three weeks if filed electronically. However, it can take longer if you file a paper return or if there are any issues or discrepancies with your return.

5. Can I e-file my tax return?
Yes, electronic filing (e-filing) is a convenient and secure way to submit your tax return. Most tax software options offer e-filing services.

6. Do I need to file a tax return if my income is below the threshold?
If your income is below the filing threshold, you may not be required to file a tax return. However, it is advisable to check the IRS guidelines or consult with a tax professional to be certain.

7. Can I amend my tax return if I made a mistake?
Yes, you can amend your tax return if you made a mistake or need to make changes. The IRS provides a specific form, Form 1040X, for this purpose.

8. What happens if I don’t file my tax return?
If you are required to file a tax return but fail to do so, you may face penalties and interest charges. It is important to file your tax return by the deadline to avoid these consequences.

In conclusion, several factors can influence your tax return in 2018. It is essential to understand these factors and seek professional advice if needed to ensure accuracy and maximize your potential refund.
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