TOLEDO (WTOL) - If you haven’t filed your taxes yet, you may be in for a rude awakening. The IRS reports tax refunds have been lower this year.
Chris Fondren is feeling the relief of getting his taxes done. The father of three did notice something different this year.
“It seemed to be a little bit lower refund,” said Fondren.
Fondren says it didn’t throw him for that big a loop, but it is a bit of a bummer.
“We’re doing a major home remodel so we were hoping to reinvest that," he said.
CPA Charlie Heid with Gilmore Jasion Mahler said for many, the lower refunds are because of president Trump’s new tax law.
“Let’s face it, it’s tough to take a W-4 that you filed years ago that you filed with an old tax system and make it work with the new tax law,” he explained.
Basically what happened is folks didn't adjust their W4's to take more money out of their paychecks. So their checks were a few dollars higher throughout the year, but that also means they won't see a big a refund as normal.
“So you may ultimately have paid less in taxes, but you’re not seeing it in that refund,” siad Heid.
Heid recommends folks get their tax returns started sooner rather than later so they can see where they are and then make adjustments.
“If you were counting on a larger refund and it’s smaller, you know, it gives you time to absorb that and make other plans,” said Heid.
If you owe, you can file now, but you don’t have to pay until April 15th and you can set up an installment plan.
Heid also urges you to update your W-4 with your employer to take out enough from your paychecks so that same doesn’t happen next year.