Well, after now, our recent two-year experience with the change in the tax code we now know:

Many things! From the new IRS postcard to the new formulas and worksheets.

Of course, many people were happy with the front end of the new tax bill when passed by Congress in 2017. In 2018, on average, everyone received a two percent tax cut. Yes, you did. If you got paid , every two weeks, yes you probably received it. And, for example, on $50,000 of income, that would be a  $1,000 total tax cut. And yes, evidence showed that consumers contributed that tax cut in their pockets via consumer spending, hence the good GDP growth for 2018.

Now comes the back end! Time to see the tax preparer for your 2018 tax life. Did you know:

There is no more exemption deduction?
There is no more true alimony deduction?
There are capped deductions on mortgage interest and property taxes?
There are stronger rules for charity?
There are no more job expense deductions?
There are no more union dues deductions?

And what are deductions worth? Well, if we say a person making $50,000 is a registered New Yorker, then their total loss of deductibility, per dollar is 40 percent (30 percent New York, 10 percent federal).

The good news: some of these can be carried over to the state. On the federal side, it’s gone.

So, for instance, $10,000 total deductions in these areas would be a federal deductibility loss of 30 percent, or $3,000. The translated deduction to real dollar cost is $900.

And wait, did you change your w-4 at work? No? Well, the good news is that you’re not alone. The IRS reported 85 percent of America did not. Why is that important? Because you, at work, could have (and still are) over- or under-paid your taxes in 2018 because Washington D.C., since Jan. 1, 2018, changed its tax bracket for you. So, that $1,000 tax cut you got and are still getting means you paid less to the government, right? Just like the loss of tax deductions, if you now do not find new tax strategies to replace the old ones that do not work then we will pay more in taxes, right?
The correct answer to both: a lesser tax refund in 2018, and still now for many others in 2019 going into next year’s tax season.

So, if you received a lower tax refund this year be sure your life is not in tune with the new rules. Then get like Mick Jagger of The Rolling Stones, still playing music at 70: get re-tuned!

If you want a higher refund next year- fix your tax life this year. Ask for Tax Planning, now!!!
Professor Anthony Rivieccio, MBA PFA is the founder and CEO of The Financial Advisors Group, celebrating its 20th year as a fee-only financial planning firm specializing in solving ones financial problems. Mr. Rivieccio, a recognized financial expert since 1986, has been featured by many national and local media including: Klipingers Personal Finance, The New York Post, News 12 The Bronx, Bloomberg News Radio, BronxNet Television, the Norwood News, The West Side Manhattan Gazette, Labor Press Magazine, Financial Planning Magazine, WINS 1010 Radio, The Bronx News, thisisthebronx.com and The Bronx Chronicle. Mr Rivieccio is also currently an Adjunct Professor of Business , Finance & Accounting for both, City University of New York & Monroe College, a Private University. For financial assistance , Anthony can be reached at (347) 575-5045. If you would like a FREE copy of The Forbes Magazine 2018 Tax e-Guide just give our office a call. Feel free to visit their FACEBOOK Business page for past Financial Focus articles:  www.facebook.com/iwantmytaxmoney