New Itemized Rules – Not So Fast AL

As many of you know the federal income tax laws have so dramatically changed that many of you that have previously itemized deductions on schedule A will no longer benefit from doing that on your federal return. This is due to the tremendous increase in the standard deduction and most folks simply will not benefit from itemizing on their federal returns any longer. Most of the returns that we saw this year will pay lower income tax bills many are $2K or more in tax savings. However, for State of Alabama return nothing major has changed so if you have been itemizing you should continue to gather and submit the same information that you are accustomed to gathering. Don’t get lazy or you’ll end up losing a large portion of your federal tax saving to the state.

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