HAZARD, Ky. (WYMT) - From deadlines to deductibles, there is a lot you should keep in mind when filing your taxes this year. For many who have already filed and got their returns, they may have noticed that it is smaller than usual. Tax experts say the difference is typically around $300 to $400 less than in the past.
"When you do see the decrease and you look at it, then you're seeing well hey, withholdings decreased. Because when they enacted the new tax laws they did change the withholding," said Jeffery Holliday, a Certified Public Accountant in Hazard.
The new tax laws signed at the end of 2017 changed how much you take home on your paycheck. The reason you are seeing less on your return this year is that, over the course of the last year, you had fewer withholdings. Meaning many people are essentially paying less in taxes during the year.
"You know, incomes seem to be higher and withholding seem to be less," said Holliday. He went on to give an example. "You had $6000 withheld in 2017 and only $5000 in 2018."
This means you already have the money you would have received in your return. For some, you may end up with more than usual. The money is just not coming in a single return like many expected.
What does the possibility of another government shutdown add to all this? Especially since IRS workers are deemed as "non-essential" government employees.
"Based upon past experiences talking with the IRS agents, they start planning because they're considered nonessential government employees," said Holliday.
The government could deem them essential government employees though, which is what happened during the last shutdown. If that is the case, a group of IRS employees would work to get people's returns filed, though it may take a little longer than usual.
"Then I think there's the potential to have some delays in refunds," Holliday added.
He went on to say that regardless of what happens, you should still file by the April 15 deadline, though he recommends filing long before the deadline if you can.