Yes, everyone wants that million dollar refund next year.

But very few understand that it takes tax planning to execute your perfect tax return (and refund) for the following year.

It’s like making a cake, right? To make a beautiful cake–in the evening–one must prepare and get the right ingredients in the morning.

But wait. A new chef has been hired: President Donald Trump. And he created “new ingredients” for you to prepare your cake or tax return for next year.

The 2017 Trump tax bill is not a tax reduction. It is not tax reform.  It is, in my opinion, true change. In this case, as far as 80 years.

Firstly, your tax base went down. On average, about two percent. That means you are paying less in tax and getting more in your pocket. On average, if you are making $50,000 a year, you are receiving $1000 back in your pocket.

Let me put it another day. That is $1000 less than you are paying in taxes, and therefore will not be in your tax refund the following year.

Secondly, do you have dependents? Wonderful! On average, the dependent credit is worth about $500 per person.

Let me tell you now, there are no more dependent listing on the returns. So if you have two children you have lost $1,000. 

Thirdly, remember the phrase, you can do your taxes on a postcard”? Well, that will be true soon. How? By getting rid of many past deductions:

* Cap on State and Local Taxes (SALT) to $10,000. To simply understand this, look at your W-2 and see exactly what you pay. I would say, in high tax states like New York that if you make over $50,000, then you are ” real close” to that cap. Make over $50,000, then you’re losing the extra as a prior tax deduction. For every $10,000, after $50,000, you’ll probably losing $1000-$1500, as an additional tax deduction.

* Job and Miscellaneous Expenses: Traveling, education, tax preparation, banking, consulting fees. Yes, those are now gone. Period. It would be normal to say that most people would be spending $1,000 in this area. So, a single person, with two children, making $60,000, paying $12,000 in State and City taxes, having a bank account and a bank advisor and tax preparer, should get ready for:

* 2018 tax cut (percent).  $,1200.00
* Dependent loss (two children):  –$1,000.00
* Cap on State & City Taxes Deduction: –$2000.00.  equ –$500.00
* Job expenses- Gone
* Deduction: –$1,000.00.

And yes, that $1,200 tax cut you received! Remember, you got it in your check where it will be reflected on your W-2 form this year. Yes, you have to pay taxes on it. The taxes will be $300.00. 

This total $3,250 loss (in refund) based on a $60,000 income is in reality, a five percent tax increase.

And truthfully, we have not even gotten started yet. Yes, some credits have gone up. But many have gone down or eliminated.

You still have time. Go see your tax advisor now!

Anthony Rivieccio is the founder and CEO of The Financial Advisors Group, celebrating its 20th year as a fee-only financial planning firm specializing in solving ones financial problems. Mr. Rivieccio, a recognized financial expert since 1986, has been featured by many national and local media including: Klipingers Personal Finance, The New York Post, News 12 The Bronx, Bloomberg News Radio, BronxNet Television, the Norwood News, The West Side Manhattan Gazette, Labor Press Magazine, Financial Planning Magazine, WINS 1010 Radio, The Bronx News, and The Bronx Chronicle. Mr Rivieccio is also currently an Adjunct Professor of Business , Finance & Accounting for both,  City University of New York & Monroe College, a Private University.  For financial assistance , Anthony can be reached at  (347) 575-5045. Feel free to visit their FACEBOOK Business page for past Financial Focus articles:  www.facebook.com/iwantmytaxmoney