It's time to prepare for tax season. And by that, I mean next tax season.
Robert Fishbein, vice president at Prudential, sat down with TheStreet to discuss all thinks taxes and--most importantly--when you should be preparing for tax season.
"You should always be thinking about actually multiple years. That's the best kind of tax planning to do is thinking over the long term. And so being prepared for this year's return but then also think about opportunities. So one example is the new tax rules and so it's really more important than ever to think about consecutive tax years because given the new rules you may not be able to itemized deductions anymore this year because there's a higher standard deduction but you might find if you bunch deductions that you can actually itemize next year. So you have to think about them together," said Fishbein.
But that's not the only thing to pay attention during tax season. The Tax Cuts and Jobs Act may have been enacted in Dec. 2017, but it's still impacting taxpayers. Fishbein weighed in on how the new tax brackets will affect tax payments.
"Pretty much the brackets across the board are down a percent or two and there's some small bands where rates actually go up. But they are definitely going to impact and some people might have some pleasant surprises in terms of getting more back and some may have unpleasant surprises in terms of owing more," he said. "By and large most people are going to pay less under this tax bill. A fair amount are going to be impacted, will be neutral, will pay about the same and then a small percentage are going to pay more. But we're all kind of learning with this tax bill. But it's good to kind of get your arms around it as soon as you can because that also impacts your estimated tax payments for next year."