Monday ushered in the official start of tax season and as far as filing taxes go, the news is a lot better today than it was a couple of years ago. There are two big reasons, Trump tax cuts and better security. First, life became a lot easier for tens of millions of Americans starting with the last tax season. The huge increase in standard deductions with the Tax Cut and Jobs Act not only provided a lower overall tax burden for over 90% of families, and it also allowed just over 90% of filers to use the standard deduction. That’s over 20% more Americans who are able to benefit by using standard deductions. That saves on time, taxes and the cost of tax preparation. A win-win-win for almost all families.
Additionally, it can help you file sooner. The news has improved in recent years with tax-filing fraud. After the tax refund ID theft hit a high of 700,000 victims in 2015, we’ve made considerable progress. Fewer than 200,000 Americans were victims last year that is a decrease of greater than 70% within five years. A combination of increased security protocols for tax prep companies and the IRS has made the difference. But still, to be one of the 200k or so victims would be miserable. The best way to avoid becoming a victim is to file your taxes as quickly as possible. If you’re set to get a refund that’s an easy call to make. If you’re set to pay the government what they haven’t already confiscated, not so much. Either way, the ability of tens of millions of additional Americans to use standard deductions also enables quicker turnaround to get a refund if you’re owed one and/or protect you from becoming a victim of tax-filing fraud. Once you’ve filed, if anyone else attempts to do so in your name they won’t be successful. That’s the advantage of filing quickly.
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