Tax experts reveal how to avoid losses during tax season
YAKIMA, Wash.- The end of tax season is here, and if you've procrastinated, Michele Taylor from Liberty Tax Service says it's not too late.
Taylor said even if you think you owe money, don't let that stop you from filing.
"Sometimes people this time of year tend to owe a little bit of money. There's two types of penalty's the IRS assesses. One for not paying on time and one for not filing on time. So if you can at least file your taxes then you are going to avoid that biggest penalty," said Taylor.
Taylor said even if you don't have all of your information ready you can still apply to get more time.
"You can still file an extension and that gives you an extra six months to file. It doesn't extend the time you have to pay, so you will still occur interest in penalties for not paying on time, but you can at least avoid that penalty for not filing," said Taylor.
President Trump has signed a new tax bill that will be in effect for the upcoming tax season, and Taylor says people will see major differences to their annual amount depending on the person.
"There's going to be some pretty significant changes next year. The biggest changes are going to be some of the child tax credit and the exemptions amount," said Taylor.
This means people who claim children on their taxes will get more money back, and people who rely on exemptions will be the ones taking a hit.
"They're increasing one thing but taking away another. It's going to balance out for some people, they are predicting that it will be better for most middle income families," said Taylor.
With the new tax bill, Taylor says there will be lower tax rates and people should expect to see more money back in their pockets each month from their job.
"Since the tax rates were going down, people were going to get more money on their paychecks. People are getting a little bit more to live on throughout the year but they might get a little less back when they actually files their taxes," said Taylor.
Taylor says if you want to see more money on your tax return next year, change your W-4 plan with your employer and have them take more money out of your paychecks each month.