It’s the time of year where many people are eagerly awaiting a tax refund. Many, however, are a little disappointed this year in the amount of those refunds. CNBC reports that the average federal tax refund is down 8.7 percent over last year. That decrease comes as no surprise to Kemper CPA Group’s David Powless.
“Everybody’s talking about smaller refunds this year,” he says. “What has created that is that the tax rates have been lower and the tax brackets have been expanded, so you can make more money at a lower rate, but at the same time your withholding has been decreased.”
Powless says this lower withholding means that money which used to be returned to taxpayers all at once in the form of a refund has not been taken from their regular paychecks during the year.
“You probably got more money all year long,” he says.