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Tax season 2019 has just gotten underway, but many people are already discovering they won’t be receiving their usual refund amount, even after careful and accurate tax preparation. In fact, the IRS is reporting that the average refund is down approximately 8% from last year. Here is some further insight into why your refund might be smaller and how you can plan better for next season. 

Why Refunds Are Down 

For most Americans, this is the first year they’re experiencing the effects of the Tax Cuts and Jobs Act passed by Congress in 2017. This included some major changes that are impacting refunds now, such as the loss of personal and dependent exemptions which helped reduce taxable income. Additionally, paycheck withholdings were reduced. This means people were receiving tax cuts throughout the year in their take-home pay, but many didn’t realize it. Thus, instead of getting a bigger refund payout all at once, it was being steadily distributed a little at a time. 

What You Can Do for Next Year 

tax preparation Although it’s too late to do anything about your refund this year, you can make adjustments that will help bring it back up for following tax seasons. If you prefer to get a larger refund that you can put toward paying off debt, home renovations, or a vacation, the key is to increase your paycheck withholding. This means more taxes will be taken out during the year, but you’ll receive it back when you complete your tax preparation next year. 

 

If you need professional tax preparation help or have additional questions about the new tax law and what it means for your refund, contact Donna J. Troutman, CPA, PC. The certified public accountant firm offers more than three decades of experience helping Lewisburg, PA, residents minimize their tax liabilities. With their expert assistance, you can have peace of mind your tax return is accurate and prepared to get you the maximum refund you’re due. Call (570) 523-7337 to schedule an appointment or visit their website for more information about the tax preparation services they provide. 

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