“This will likely reduce take-home pay for people in the workforce, tax deductions will be reduced, tax returns may be more complicated and the tax benefit of Roth IRA conversions will not be as favorable for many taxpayers,” said Rob Burnette, investment advisor representative and professional tax preparer at Outlook Financial Center in Troy, Ohio.
The upshot is that for many taxpayers, “the amount of taxable interest on savings accounts is small,” says Rob Burnette, a tax preparer at Outlook Financial Center in Troy, Ohio. But that’s not always the case. “For people that are highly risk-averse—many are older—then they will have a significant portion of their assets in savings accounts. Those numbers may be more noticeable.”
"The delay actually helps higher-income wage earners because it allows them to continue to get the tax benefit now rather than later," said Rob Burnette, CEO and investment advisor representative at Outlook Financial Center.
“If you are in the 22% marginal tax bracket, you are paying taxes on their capital gains and dividends,” Rob Burnette, financial and investment advisor at Outlook Financial Center LLC, says.
“Also, make sure you sign your return before sending,” said financial advisor and professional tax preparer Rob Burnette of Outlook Financial Center. An unsigned tax return isn't valid, the IRS says.
“They will insist on cooperation with their request, and [say that] any noncompliance may result in a warrant being issued for your arrest, or other fines and penalties,” said Rob Burnette, professional tax preparer at Outlook Financial Center in Troy, Ohio.