SYRACUSE, N.Y. (NCC News)— Tax preparers expect to be extremely busy in the next few weeks as April 15 marks the deadline for payment of federal and state taxes. One local expert said filers will notice two major changes this year in federal taxes: a cap on deductions for state and local taxes, and smaller refunds.
Alex Nitka, senior tax manager at Dannible and McKee in Syracuse, said that in the past, taxpayers could deduct all of their state and local taxes at once.
“This year that amount is going capped at $10,000,” Nitka said. “To make up for that, the standard deduction is doubled.”
Nitka cautioned that taxpayers should not be upset if they see a smaller refund.
“What could be happening is that they could be having less withheld from their paycheck,” Nitka said.
Nitka said that it is too early to tell who will benefit from the tax changes instituted last year by the Trump administration.
“You could have two people that are making the same amount of money, but one the tax plan would hurt and one the tax plan would help,” Nitka said, depending on their circumstances and other deductions.
Nitka offered consumers two tips:
- Always go to a reliable tax preparer. New York State has a website to determine whether or not a firm is reliable.
- File your taxes as soon as possible to avoid problems such as identify theft.
