PARMA — The average size of a tax refund check is shrinking this tax season.
They will end up being about 10 percent smaller.
“Some people who have been receiving a refund, will not and will actually owe,” said Michael Simic, CPA.
This could happen because of sweeping tax changes that are part of the first major tax code overhaul in about 30 years. The majority of Americans got a tax cut last year, there was more money in their paychecks, according to Simic.
But, this year, refunds are a different story. While about 80 percent of Americans are paying less taxes, said Simic, about half of those taxpayers are getting less back.
New tax regulations cap property and income tax deductions and unreimbursed employee expenses are now a thing of the past. These are things like travel, mileage, items used for work that employers don’t reimburse. “Those are the people who lose the most,” said Simic.
Personal exemptions are gone, replaced by higher standard deductions and an increase in the child tax credit.
