How should I use the Tax Reform Impact tool?
The Tax Reform Impact tool can help you understand how you might be affected by tax reform for your 2018 taxes.
To use the Tax Reform Impact tool, you’ll need to enter some key information about yourself, your pre-tax income and any tax payments you made, like withholdings from your paycheck. If you typically itemize your deductions, we’ll also ask that you enter some details about certain deductions affected by tax reform. We’ll use these figures to determine how tax reform may impact you and to calculate an estimate of your overall tax liability or refund for your federal tax return.
If you make a mistake or want to explore how different scenarios might impact your tax return, you can change any information you entered into the tool by clicking on Update my Info.
The Tax Reform Impact tool is available to all Credit Karma members. It does not prepare or file your taxes or send any information to Credit Karma Tax. Even if you don’t file your taxes with Credit Karma Tax you can use the Tax Hub on Credit Karma to estimate your taxes and learn how tax reform may affect you.
Filing your taxes with Credit Karma Tax is free.
Why does the tool say the standard deduction is higher for me this year when my itemized deduction was higher last year?
Tax reform made changes to many itemized deductions that you may have claimed in previous years while also increasing the amount of the standard deduction. For example, you can only deduct state and local taxes up to $10,000 for most filing statuses (if you are Married Filing Separately, you can deduct up to $5,000 for state and local taxes.) Before reform there was no limit on the amount of state and local taxes you could deduct so your itemized deductions may be smaller this year.
You can check out our articles on Itemized deductions: Some things to know for your 2018 taxes and 7 tax cuts that take effect in 2018 to learn more about how tax reform might impact your return.