COLORADO SPRINGS – The big question for people this time of year is how much money they’ll get from tax refunds and will the amount be bigger than last year?
Our partner at Carlson Financial said people should be prepared that they might receive a smaller check this tax season.
Carl Carlson, CEO of Carlson Financial, said, “Overall when they ran all the numbers 2/3 of Americans are better off under the new tax act.”
That statistic may have taxpayers believing they’re in for a larger refund check this year.
Some people might reap that benefit such as “people that don’t itemize or didn’t have very much to itemize.”
However, Carlson said this isn’t the case for everyone.
“The problem is that the withholding tables were changed in early 2018 which means that extra refund that you maybe thought you were going to get you’ve been getting it every paycheck.”
If you weren’t managing your account you may not have noticed that extra money.
So when your refund does come around and it wasn’t what you were expecting Carlson said, “That can be a little challenging especially if you’ve already spent it…what they should do then if they didn’t get as big a refund or they got a little surprise there is they need to go back to their HR and say hey, I think I need to change my withholdings.”
He suggests having them withhold just a little bit more to prevent that big surprise next year.
Carlson said if you’d like to try and get a bigger refund next year or pay less talk to a CPA or accountant to find out what your options are.
Carlson Financial is a sponsor of Financial Focus.