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Smaller tax refunds could be avoided next year

Smaller tax refunds could be avoided next year
Posted at 10:16 PM, Feb 18, 2019
and last updated 2019-02-19 00:16:27-05

TUCSON, AZ — Smaller tax refunds are surprising many people expecting relief.

According to the IRS, the average refund among early filers is down 8.4%.

H&R Block tax specialist, Maria Jose Swailem, says everyone's situation is different but there are a couple core reasons to point to a lower refund or ending up owing money.

"Back in February 2018 some of the tax payers were receiving their pay checks and they were seeing a difference on their paychecks, they were seeing more money coming to them."

Swailem says with the new tax law, withholding tables changed, if people didn't update their W-4's, they could end up receiving less money already in their paychecks throughout the year.

"Withholdings are a major part of your refund right now because we don't have exemptions, exemptions are gone."

There is still time to see a difference in your refund next year.

One way of doing that is by asking your HR representative at work that you'd like to update your W-4 to increase the amount of money taken out of your paycheck each month.

"They have to do it now if they want to see a bigger refund for 2020."

The deadline to file taxes this year is April 15.