Every individual who was required to file an income tax return under the 2017 rules will be affected by the 2018 revisions to the Income Tax Code. The vast majority of filers will pay less federal income tax under the new law. Due to the increase in the standard deduction, some people previously required to file a tax return will no longer have a filing obligation. IRS has developed Publication 5307 that gives a 12 page overview of the changes for individuals.
Virtually all individual returns will be affected by the rate changes, the increase in standard deduction, and the repeal of personal exemptions. Taxpayers with dependents have new dependent tax credits. Taxpayers who operate a business or farm, or who own interests in S-Corporations or partnerships have new potential deductions.
Under the 2017 tax rules, about 1/3 of filers itemized deductions, in lieu of the standard deduction. Because of the major changes in allowed itemized deductions and the large increase in the standard deduction, it is estimated only about 8 percent of filers will itemize in 2018.
IRS is concerned that employees aren’t having the proper amounts withheld from their paychecks, and has posted an online calculator to help determine the correct withholding allowances. The 2019 Form W-4 ‘Employee’s Withholding Allowance Certificate’ has 2 pages of instructions and 2 pages of worksheets.