Many Oklahomans likely getting smaller tax refunds this year
Are taxpayers receiving lower refunds this year?
The Internal Revenue Service has reported that tax refunds are 17 percent lower than the same period last year. And many of my clients are seeing lower refunds.
I thought the new tax law was supposed to put more money into taxpayers' pockets. What's up?
Most taxpayers are receiving more money in their paychecks, which lowers their withholdings. And fewer withholdings equate to potentially smaller refunds. If you were taxed less in 2018 than previously, you fared better — regardless of your refund amount.
Why are less taxes being withheld from paychecks?
When the new tax law was passed in December 2017, the payroll withholdings tables also were adjusted. The tax withholdings for most of my clients fell $50 to $250 per paycheck, which put more money in their pockets year-round. As with any law, there are winners and losers. But most of my clients are seeing a better overall tax picture than last tax season.
If taxpayers aren't happy with their refund amounts, what should they do to ensure they get a larger refund next tax season?
The easiest thing to do is go to your company's payroll officer and increase your withholdings. Generally, large refunds aren't a good thing, since you're giving the IRS control over your money. But, I've learned many people want large refunds and use them to pay off bills, for home improvements and vacations.
Paula Burkes, Business writer