WICHITA FALLS, TX (TNN) - There has been an 8.4% decrease in the average tax refund for early filers. That is about $170 less than last year. With the Tax Cuts and jobs Act now in effect, workers may have seen a rise pay in 2018, But if they did not adjust their withholdings they could now be seeing the domino effect.
Gene Naddau with Liberty Tax Services in Wichita Falls said one reason workers may have seen an increase in income is because of the new tax law passed in late 2017. While many may now know about how the new law doubled the standard deduction and changed the credits for those with children, they may not have taken note of the changes to corporate tax cuts.
“The treasury also sent to all employers new withholding rates and new tables based on what the reductions were going to be in taxes,” Naddau said.
It is why some workers may have seen an increase in pay, but not as much money being withheld. Naddau added, “Probably, most people didn't realize that it was even different. They got to spend a couple of dollars extra each payday, but that makes a change at the end.”
Naddau suggests tax payers communicating with their HR Department how much they want withheld if they want a larger or smaller refund. It is also important to remember that taxes vary from person to person depending on their marital status, income, and number of dependents.