Many Taxpayers Surprised by Smaller Refunds
Many Taxpayers Surprised by Smaller Refunds
Sticker shock in the retail industry is not uncommon. But many taxpayers, this year, have been getting somewhat of a sticker shock when it comes to their tax refunds. That’s because so far this tax season, refunds have been down. Way down.
The Tax Cut and Jobs Act came with promises of a nice tax break for the middle class. So why have so many refunds been reduced? The reason is the new laws changed withholding amounts. That means taxpayers have been getting more income with each paycheck. Because less money was being withheld all year, people are getting less back in their tax refunds.
The problem is most taxpayers haven’t seen a huge difference from paycheck to paycheck. So they haven’t noticed the cumulative affect. The IRS warned taxpayers all year to check their W-4s to ensure the proper amount was being withheld. However, in many cases, taxpayers didn’t heed the warnings.
Now that tax season is here, most taxpayers are expecting their usual refunds. But that’s just not happening, which is leaving numerous taxpayers upset. However, the truth is, you don’t want to have a large refund because that money belongs to you all year. The new tax laws make it so you get it up front, instead of waiting until the following tax season.
But it might take some time for taxpayers to get used to the changes.
We hope you found this article about “Many Taxpayers Surprised by Smaller Refunds” helpful. If you have questions or need expert tax or family office advice that’s refreshingly objective (we never sell investments), please contact us or visit our Family office page or our website at www.GROCO.com. Unfortunately, we no longer give advice to other tax professionals gratis.
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Alan Olsen, is the Host of the American Dreams Show and the Managing Partner of GROCO.com. GROCO is a premier family office and tax advisory firm located in the San Francisco Bay area serving clients all over the world.
Alan L. Olsen, CPA, Wikipedia Bio
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The American Dreams show was the brainchild of Alan Olsen, CPA, MBA. It was originally created to fill a specific need; often inexperienced entrepreneurs lacked basic information about raising capital and how to successfully start a business.
Alan sincerely wanted to respond to the many requests from aspiring entrepreneurs asking for the information and introductions they needed. But he had to find a way to help in which his venture capital clients and friends would not mind.
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