-- Local Tax Firm, Stop My IRS Bill, recounts this tax season, stating that they receive numerous phone calls even a month past the April 15 filing deadline, in large part due to the new tax laws that radically changed the SALT (state and local tax) deduction for many taxpayers in California. SALT deductions such as local property tax and state income tax are now significantly limited. This means that for many middle class or upper middle class taxpayers this has been an especially hard financial hit that nobody was really prepared for.
“Starting with the 2018 tax year, the maximum allowed SALT deduction is capped at $10,000. Prior to the new law there were no limits. High net worth and high income taxpayers will have a much higher tax bill,” said James Harnsberger, CEO of the firm and an Enrolled Agent, and added “We have many clients and many calls from taxpayers who are really feeling the sting of the SALT provisions of the new tax bill. In fact, most clients decided to file extensions on April 15 at the last minute because they were NOT prepared for the sticker shock. For every dollar lost in the deduction it will cost between 30 and 40 cents in new taxes. People are not happy.”
Most taxpayers—who itemize their deductions and who can deduct property taxes—must choose between deducting their income tax or the California state sales tax. Stop My IRS Bill recommends that California taxpayers choose to deduct their income tax because those payments generally exceed the deduction allowed for sales tax.
Stop My IRS Bill expects that this impact will increase not only the number of taxpayers who have gone on extension to file tax returns, it is surely most likely to increase the stress levels for taxpayers who have been hit by the surprise of the new tax bill when they write a check to the IRS for 2018.
About Stop My IRS Bill – The company was founded by James Harnsberger, an Enrolled Agent admitted to practice before the IRS and is located in La Mesa, CA. The company specializes in helping people resolve their tax issues and disputes with the IRS.
Contact Info:
Name: Susan Harnsberger
Email: Send Email
Organization: Stop My IRS Bill
Address: 7777 Alvarado Road, Ste., 211, La Mesa, CA 91942
Phone: 858-616-7400
Website: https://www.stopmyirsbill.com/
Release ID: 512689
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