Tax Refund Reckoning
Some early tax filers have received an unexpected result – their refunds have gone down.
NBC News reports that filers often – incorrectly – equate their tax refund with their tax liability. While the Tax Cuts and Jobs Act reduced the amount of taxes withheld from paychecks for a number of workers, it also revamped the tax code that we all use to file our tax returns.
Some filers have been shocked to see reduced refunds and have taken to social media claiming that their taxes were increased when what really happened is they simply didn’t receive the same deductions as in years prior which resulted in larger refunds.
One filer told NBC News that they were expecting a $6,000 refund, as in years past, and were taken back when they learned their refund this year would be less than $500.