Consumer Watch: Last minute tax facts
OKLAHOMA CITY (KOKH) —
The IRS reports refunding nearly 198-billion dollars to taxpayers so far this year. That number is actually slightly less compared to last year, but just point-one-percent lower.
If you still haven't filed your return, the new tax law will change very little for you this year.
Major changes in the tax law dominated the headlines earlier this year, and though the law has changed, most of those changes won't change your return this tax season.
“The new tax reform laws will largely go into effect for the 2018 finances, meaning they shouldn't affect your taxes this year too much,” says Carson Yarbrough, with Offers.com.
If you find that instead of getting money this year, you actually owe the IRS money, don't panic. There are steps to take that won't leave you broke.
“You can actually file an installment agreement request form from the IRS which allows you to set up an installment payment plan to slowly pay back your taxes based on your financial situation,” says Yarbrough.
Yarbrough also says there will be some changes that affect certain people's taxes this year. You can expect to see a change on how you deduct medical expenses. Before, to deduct un-reimbursed medical expenses, the cost had to be more than 10-percent of your income. Now, the amount has to be more than 7.5-percent of your income.
If the amount of money you owe is extremely high, there are also "offers in compromise,” but this is only in extreme cases because this is similar to bankruptcy.
If you are looking for an installment plan to pay your outstanding taxes, the IRS does charge a fee to be a part of the payment plan.