Why your tax refund might be smaller this year
BRYAN, Tex. (KBTX) – A local certified public accountant is helping to explain why your tax refund might be lower this year. Reports say on average, Americans are receiving 8 percent less in their tax returns.
“The reason why might surprise you,” said Chris Chapman with Brazos Valley CPAs. He says it’s actually because you’re likely pay less in taxes altogether.
Because the tax return is usually a percentage of the taxes paid, Chapman explains, paying less in tax means a smaller return.
Chapman says it’s a change he attributes mostly to the Tax Cuts and Jobs Act.
“There are always going to be winners and losers; there are going to be some losers in this,” said Chapman. “But for the majority of your W-2 people who have children under the age of 17, they’re going to be winners in this because you’re having not only a reduction in tax liability but also you’re getting the doubling of the child tax credit, which is going to be a huge benefit to a lot of people.”
For the full conversation, see the video player above.