Shocked by your tax refund? Next year could be worse if you do not act now

If a family was able to claim the child tax credit or the new qualifying business income deduction, it may not have been owed, even if it could no longer deduct its income tax from the state and local, said Ms. Taylor. But if they did not enjoy the most recent tax benefits, "they risked losing completely. Hence the high level of frustration and surprise among people. "

At the beginning of this tax season, I.R.S. statistics have shown that the average reimbursement of taxpayers has decreased by almost 17%. Things have settled since: on April 5, the average repayment rose to $ 2,833, down 1.1% from last year.

But that's not the whole story: one million fewer taxpayers received a refund.

The averages also hide what was happening in individual households across the country. In New Jersey, for example, H & R Block found that on average, its customers owed about 30% less taxes than in 2017. But their repayments decreased by about 6% according to an analysis of customers who made their deposits until the end of March. .

Overall, H & R Block stated that the total liability of its taxpayers had decreased by $ 1,200, while repayments had increased by $ 43. Instead of substantially larger repayments, these taxpayers received about $ 50 more in their pay checks every two weeks starting in March 2018, for a total of $ 1,156 – which they would not have received. maybe not even noticed.

Whether or not for 2018, it is time to update your payroll deductions. Theirs. suggests performing a "payroll check" each year to avoid surprises. The great events of life like getting married or having a child are other reasons to repeat this exercise.

The use of the Ir.S. facilitates the filling of the W-4 form. TurboTax and H & R Block offer similar tools. The calculator helps taxpayers estimate their income tax in 2019 and compare that amount with their withholding tax. This will show them if they should have more or less money withheld on their paychecks.

The amount withheld is determined by the number of so-called indemnities. The less you claim benefits, the more each check is set aside. You can increase your deductions by specifying an additional dollar amount to be set aside for each pay period.