Tax Bill Changes
Due to all the changes in the tax bills some taxpayers may find that their refund is not as much as they have received in the past. According to IRS the refund averaged about $2,800 of the majority of taxpayers.
Some of our taxpayers might have gotten more income during the year, and did not adjust their withholding ratios. Hence not as much money back.
If you have ever read anything from me, you know how I feel about this subject. People hope and pray for a bigger tax return. They seem to believe that this means that they have “put it to the man”. I have always believed that getting a big tax refund means that you have allowed the government to hold your money all year at no interest.
People counter by saying, “But it is the only way to build up a fund for our family.” Why not just have your paychex company send that extra money to some savings account? If you have any credit card debt, have the funds sent there. In that case you will be lowering your interest outgo as credit card debt is priced at about 27%.
Quote From The Paper
Read this quote this week in our big paper: “People are really happy when they get a big refund. Or they’re either sad or distressed or confused if they are not getting the refund they were hoping for.” Yes, they want to lend more money to the government. Whose quote was that? Kathy Pickering, executive director of the Tax Institute, an arm of H&R Block. Now that is surprising. Block wants people to get more refunds. Jackson-Hewitt this year is doing role-plays to better handle people whose refunds are found lacking.
Once in a previous life due to economic circumstances when I was switching careers to self-employed, I worked two seasons for an outstanding Block-type company. One day I got a man who had been retired for the first time that year. I finished his return and announced proudly that he would have no tax to pay. He was instantly angry and verbal. “I have always gotten a refund”. “Yes, but this year you put no money in.” “I want to see the owner, as I would like someone older to look at this return, you are incompetent.”