New Tax Laws Could Keep Some From Filing Taxes

Several changes in the tax laws this filing season could affect how much you receive in your return, or even when you can file.

Those who received unemployment benefits can no longer write off $2,400. “The entire amount is taxable,” said Terry Hansen with Jackson Hewitt Tax Services.

Some other changes could affect teachers. The Higher Education Tuition and Fees Deduction or the Educator Expense Deduction were not signed into law until December, meaning the Internal Revenue Service is asking those who would normally claim those deductions to hold off on filing their tax returns until Feb. 14.

“It is an inconvenience to them,” Hansen conceded. “But do they want to itemize? Yeah, they want to itemize,” he continued. “They want to get their money back and get the better deduction versus the standard.”

Hansen added that teachers and those paying tuition to a higher-education institution can file their taxes earlier than Feb. 14 if they file a standard return.

Another change is to the deduction you can claim for business conducted in your personal vehicle. Now you can only be reimbursed 50-cents per mile.

Other smaller changes could also affect the size of your return, which leads Hansen to urge filers to at least ask for help if they typically file on their own.

“When you go online, is it cheaper than going to a professional? It probably is,” Hansen said. “But the idea is, you still have to know the tax law to be able to open the icon to do it.”