Surprise, no income tax refund for you!

[Yo_Mama_Been_Loggin]

This is turning out to be a difficult year for a lot of taxpayers.

Major tax law changes that took effect last year are impacting people’s beloved refunds. The IRS reported that, as of Feb. 1, refunds are down 8.4 percent. The average refund was $1,865, compared with $2,035 for the same period a year ago.

For some, a significantly lower refund amount than in previous years has come as a shock — and they are livid.

“As a retiree on a fixed income, I depend on my tax refund for some of my rainy-day fund,” wrote Virginia resident Carolin Ringwall. “My refund is $1,500 less than last year, even though everything else is the same.”

The new law increased standard deductions but removed personal exemptions, and it limited or discontinued certain other deductions. For instance, the total combined deduction for sales, property, and state and local taxes is now limited to $10,000 ($5,000 if married and filing separately).

“The updated federal-tax withholding tables, released in early 2018, largely reflected the lower tax rates and the increased standard deduction brought about by the new law,” the IRS said in a statement. “This generally meant taxpayers had less tax withheld in 2018 and saw more in their paychecks.”

Here’s the problem: Any increase may have been so small that people didn’t realize they were getting more money in their paychecks and that it would result in much smaller refunds when they finally filed their returns.

And because the withholding tables couldn’t fully factor in some of the changes, some people may not have had enough money taken out of their paychecks or retirement income to cover any taxes due, according to the IRS. The agency had issued warnings to taxpayers to check their withholdings.

https://www.heraldnet.com/business/surprise-no-income-tax-refund-for-you/?utm_source=DAILY+HERALD&utm_campaign=a8363e5417-RSS_EMAIL_CAMPAIGN&utm_medium=email&utm_term=0_d81d073bb4-a8363e5417-228635337

[Joe941]

1. I might be one of the lucky ones but my taxes were down a fair bit.

[Cirque du So-What]

4. Luck has nothing to do with it

Something had to have changed with your situation for your taxes to have gone down a fair bit. If nothing had changed, your taxes would have gone up by some extent.

[MichMan]

7. Pretty certain mine went down too.

Married with no dependents and haven't itemized for a decade or so as I never came close to the standard deduction.

[uponit7771]

8. I know someone who was face bent, they have more than 2 children .. that was 5000 off ...

... their previous years deductions so a middle class family now is owing 2300.

They didn't change their W2s either, that was an act of the IRS to make Red Don's tax cut look good.


The MSM is under reporting people getting face bent on taxes and over reporting Smollet shit

[Joe941]

11. I think that is the key.

Those that itemized last year probably didn't do good this year. But if you can use the standard deduction then you probably win substantially.

[MichMan]

15. I would think this would help many low income folks

I would expect most would likely be renters & would use the standard deduction instead of itemizing.

[hughee99]

10. I made a bit more this year but paid about the same overall in federal taxes. nt

[wishstar]

2. I increased my tax withholding last year or I would owe money now

I didn't trust the automatic withholding that would have given me a sizeable pay increase but would have left me owing IRS now. Instead I will get a refund. I can't see any pay increase due to lower taxes, just a small cost of living increase in my pay.

[lindysalsagal]

3. Home owners in blue states are averaging up $2K, according to my cpa.

We'll see if they remember it in 2020.

[JenniferJuniper]

5. It's mostly the blue states who are actually paying more

If you own property and you pay state taxes, the 10k deduction is likely to be less than what you could deduct previously.

In my case it was significantly less and it was coupled with the loss of several other deductions.

This was all by design, meant to punish those states that don't support the pigs that devised this.

[Blue Owl]

6. Instead, some billionaire is getting a SECOND YACHT!

USA! USA! USA!

[uponit7771]

9. +1, people are missing the fact that the upper 2% got a HOLISTIC tax cut... they ALL are paying

... less this year apples to apples to 2017.

The upper 30% of the middle income range (IE affluent areas of blue states) can afford to pay a little more but that's crazy that the 2% of the WHOLE TOP is paying LESS !!

[Tink41]

12. My personal issue.

I work about 6 mos a year. It's the nature of my job. Anyway I don't have taxes taken out of UE because in the last 30 yrs after all my deductions it all evened out. I don't work for the same employer all year either. Sometimes 3, sometimes 10. My employer wouldn't notify us about wh because we weren't employed when the changes happened. I personally lost about 4grand in job expenses that previously were written off. Also my incentive to own my home and pay property taxes just went out the window. I feel I'm now equal to a renter except I'm paying about 6grand above them for property taxes. Thanks!!!

[MichMan]

14. Renters do pay property taxes; it's just hidden in ther rent

[Yo_Mama_Been_Loggin]

16. Unfortunatly they don't get to claim it.

[stopbush]

13. Er, when did the IRS issue warnings to check withholdings?

Guess I missed those. Anyone else?

[NutmegYankee]

17. I never remember announcements.

I did happen to redo my W4 because the first pay period where the law kicked in significantly under-withheld the tax. At the time the IRS had not setup the W4 rules. I had been claiming two allowances and cleared them since the IRS couldn't tell me how many to take. The end result was I made $5K more for 2018, but paid $10 less in total tax than 2017 with a $377 increase in tax return size. My luck was a smaller house - I just fell under the $10K SALT limit.