On Tax Day, here’s a tale of two returns — one nasty and one nice TaxDay
In Montana, Chris Roane was frantically re-running the numbers once his accountant broke the news. “I thought, ‘Are you serious, we owe five figures?’”
Many people were surprised and confused about an overhaul that was hailed as tax relief. This is the tale of two tax returns that’s now playing through America in the aftermath of President Trump’s new tax law. It’s the first filing season since the 2017 reconstruction of the federal tax code. For many, the focus on springtime refunds might miss the point of tax reforms that enlarged paychecks during the year, said Jean Wells, a Howard University professor running the school’s Volunteer Income Tax Assistance program.
“If people are accustomed to getting big refunds, come April it’s just a shock to them” — just like $50, $60 extra included in each paycheck ahead of that, D’Attilio added. On March 15, Chris Roane’s accountant told him he had to pay $11,500. His deadline for that payment? March 15. Their 2017 start up costs were around $25,000 and business was “a little slow at first,” said Roane, who also detailed his story on his personal finance blog, Moneystir.com. The couple’s 2017 returns ended with about a $10,000 state and federal refund.
At the other end of the tax-refund scale, Francis had a low tax exposure because Washington has no state income tax. She opted for the standard deduction, and took her time making sure she didn’t foul up her filing through Intuit TurboTax INTU, +0.32% Francis had heard “horror stories” and was “terrified I was going to miss something.”
New Jersey is one of the suing states. H&R Block’s analysis said its Garden State clients had the biggest drop in tax liability, 29.1%, and the second largest decrease in refunds, 5.7%.
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