I see talk of a tax cut with the new administration. How does that affect me when filing my 2016 taxes? Should I wait to file?

heppner5 · ‎May 31, 2019

Opus 17 · ‎May 31, 2019

Tax cuts are almost never retroactive. That is very difficult for the IRS, and it may be unconstitutional to raise someone's tax retroactively. (It's not unconstitutional to lower someone's tax, but any new tax plan will probably have winners and losers.)

You can wait if you want, but the most likely situation is that taxes will change for 2017 and going forward but not going backward to 2016. If there are backwards changes, you would be able to file an amended return.

*Answers are correct to the best of my ability at the time of posting but do not constitute legal or tax advice.*

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Opus 17 · ‎May 31, 2019

Tax cuts are almost never retroactive. That is very difficult for the IRS, and it may be unconstitutional to raise someone's tax retroactively. (It's not unconstitutional to lower someone's tax, but any new tax plan will probably have winners and losers.)

You can wait if you want, but the most likely situation is that taxes will change for 2017 and going forward but not going backward to 2016. If there are backwards changes, you would be able to file an amended return.

*Answers are correct to the best of my ability at the time of posting but do not constitute legal or tax advice.*

I see talk of a tax cut with the new administration. How does that affect me when filing my 2016 taxes? Should I wait to file?