You Still Have Time to Save on Your Taxes

Start now to take advantage of all of the tax breaks available to you.

- SANDRA BLOCK

The deadline for filing your federal tax return is still weeks away, but there are plenty of reasons to start your taxes well before April 15. If you’re owed a refund—and most taxpayers are—you’ll get your money that much sooner. Filing early will also reduce the risk that a crook will hijack your refund, because someone can’t steal a refund that’s already been claimed. And even if you end up owing the IRS, it’s better to know that now, when you have time to come up with the money, than at 11 p.m. on April 14. // But perhaps the most compelling reason to start now is that filing early will give you enough time to claim all the tax breaks available to you. The Tax Cuts and Jobs Act, now in its second year, nearly doubled the standard deduction, which for 2019 is $12,200 for single taxpayers and $24,400 for married couples who file jointly. Only about 10% of taxpayers will continue to itemize. // Even if you’re sure you’ll claim the standard deduction, don’t assume you can polish off your return during the Super Bowl halftime. Congress has recently enacted a bevy of tax credits and deductions for non-itemizers. Overlook them and you could end up paying more to the IRS than you should.

The tax code is particularly welcoming for parents, even if they don’t itemize. For example, if you became a parent last year, you’ll be eligible for a $2,000 tax credit. Unlike a deduction, which reduces the amount of income the government gets to tax, a credit reduces your tax bill dollar for dollar. The credit begins to disappear as income rises above $400,000 on joint returns and above $200,000 on single and head-of-household returns—although there’s no limit to how many kids you may claim on a return, as long as they qualify.