It’s not fun and no one likes to do it; but it is that time of year again where Americans are filing their taxes for the previous year. And, according to complaints from those getting a head start, this year is more difficult than previous years.
The most commonly occurring complaint is that people are receiving a much smaller refund than normal, and they claim nothing has changed on their end.
“I hear this every year,” remarked Justin Carr, owner of Drenda’s Fast Tax. “And the truth is that usually the person filing taxes has done something different. Usually, when we review their information we can find what changed to alter everything.”
“I don’t necessarily know what they’re seeing,” remarked Josh Love, an accountant with Kraft, Miles and Tatum in Poplar Bluff. “There haven’t been any significant changes to the tax code in the past year.”
Carr noted that filing taxes can be stressful, and certain programs that allow for someone to file their taxes alone aren’t always the most accurate. Likewise, Love concurred that it can be easy to miss certain things when filing taxes alone without assistance.
Love went on to explain that sometimes things can change due to changes within a person’s payroll department, or the possibility that the employee needed to change something but did not get around to doing so.
Both Love and Carr noted there are different things that can affect the amount of a tax return.
“The tax breaks that took place in 2017 were some of the most significant and sweeping tax changes I’ve ever seen happen at one time,” Carr noted. “It changed the standard deduction. It was such a change that the 1040 (tax form) changed altogether. The form itself didn’t completely change, but there were more pages attached to it. Most people benefited from that tax cut.”
The Tax Cuts and Jobs Act that was signed into law in 2017 is set to expire in 2025. If it isn’t renewed, then the average tax payer will see their withholdings change, and multiple other things would be affected.
“If those cuts expire and they aren’t renewed, then people definitely could end up owing more in taxes,” Love added. “Because those deductions and credits will change. It really is up to the legislature to make sure that doesn’t happen.”
“Technically, the earned income tax credit expires every few years,” Carr added. “But Congress renews every time it’s set to expire. I think it would probably be political suicide to vote against it. Congress could do the very same thing with the 2017 tax cuts.”
Both Carr and Love remarked that there is no reason they can think of for tax returns to be lower than expected this year, as there simply haven’t been any changes in the tax code.
“It’s possible that someone could earn enough money to put them out of range for one particular tax credit or another,” Love explained. “But I can’t say for sure without looking at someone’s information.”
Love went on to explain the current tax code is confusing for many people and can be difficult to navigate, as the current tax code is progressive and not a flat rate.
“A lot of the time, when a person hears a percentage being used in conjunction with taxes, they mistakenly think it’s the percentage of that whole amount,” Love stated. “It’s not like that. Different amounts of money are taxed within the tax bracket those amounts correspond with. So, if you move up to the next bracket, the additional tax rate applies only to that dollar amount in the next bracket.”
Both Carr and Love explained that, while it can be tempting to prepare your taxes alone, it is better to sit down with a tax preparer if you have any questions about your return.
“It just makes sense to have someone in front of you and physically looking at your forms and being able to discuss the situation with you,” Carr said. “That way you can ask your questions and the person helping you can directly guide you to what you’re wanting to achieve.
“As far as hearing that the return is lower than it should be, or lower than expected.... that’s something I hear every year.”
Taxpayers have until April 15 to file for their return.It’s not fun and no one likes to do it; but it is that time of year again where Americans are filing their taxes for the previous year. And, according to complaints from those getting a head start, this year is more difficult than previous years.
The most commonly occurring complaint is that people are receiving a much smaller refund than normal, and they claim nothing has changed on their end.
“I hear this every year,” remarked Justin Carr, owner of Drenda’s Fast Tax. “And the truth is that usually the person filing taxes has done something different. Usually, when we review their information we can find what changed to alter everything.”
“I don’t necessarily know what they’re seeing,” remarked Josh Love, an accountant with Kraft, Miles and Tatum in Poplar Bluff. “There haven’t been any significant changes to the tax code in the past year.”
Carr noted that filing taxes can be stressful, and certain programs that allow for someone to file their taxes alone aren’t always the most accurate. Likewise, Love concurred that it can be easy to miss certain things when filing taxes alone without assistance.
Love went on to explain that sometimes things can change due to changes within a person’s payroll department, or the possibility that the employee needed to change something but did not get around to doing so.
Both Love and Carr noted there are different things that can affect the amount of a tax return.
“The tax breaks that took place in 2017 were some of the most significant and sweeping tax changes I’ve ever seen happen at one time,” Carr noted. “It changed the standard deduction. It was such a change that the 1040 (tax form) changed altogether. The form itself didn’t completely change, but there were more pages attached to it. Most people benefited from that tax cut.”
The Tax Cuts and Jobs Act that was signed into law in 2017 is set to expire in 2025. If it isn’t renewed, then the average tax payer will see their withholdings change, and multiple other things would be affected.
“If those cuts expire and they aren’t renewed, then people definitely could end up owing more in taxes,” Love added. “Because those deductions and credits will change. It really is up to the legislature to make sure that doesn’t happen.”
“Technically, the earned income tax credit expires every few years,” Carr added. “But Congress renews every time it’s set to expire. I think it would probably be political suicide to vote against it. Congress could do the very same thing with the 2017 tax cuts.”
Both Carr and Love remarked that there is no reason they can think of for tax returns to be lower than expected this year, as there simply haven’t been any changes in the tax code.
“It’s possible that someone could earn enough money to put them out of range for one particular tax credit or another,” Love explained. “But I can’t say for sure without looking at someone’s information.”
Love went on to explain the current tax code is confusing for many people and can be difficult to navigate, as the current tax code is progressive and not a flat rate.
“A lot of the time, when a person hears a percentage being used in conjunction with taxes, they mistakenly think it’s the percentage of that whole amount,” Love stated. “It’s not like that. Different amounts of money are taxed within the tax bracket those amounts correspond with. So, if you move up to the next bracket, the additional tax rate applies only to that dollar amount in the next bracket.”
Both Carr and Love explained that, while it can be tempting to prepare your taxes alone, it is better to sit down with a tax preparer if you have any questions about your return.
“It just makes sense to have someone in front of you and physically looking at your forms and being able to discuss the situation with you,” Carr said. “That way you can ask your questions and the person helping you can directly guide you to what you’re wanting to achieve.
“As far as hearing that the return is lower than it should be, or lower than expected.... that’s something I hear every year.”
Taxpayers have until April 15 to file for their return.