Change in tax code means smaller refunds for many Americans

Hadas Kuznits
February 09, 2019 - 1:29 pm
Tax return
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PHILADELPHIA (KYW Newsradio) -- With tax season in full swing, some people may be noticing their refunds are smaller than expected. But that doesn't necessarily mean you're paying more in taxes.

CPA Jennifer Romberger points out the 2018 tax code was changed.

"And I'm anticipating that some people will be disappointed by a lower refund," Romberger said, "when in reality people need to review their actual federal income tax expense."

She says people most likely got their money back throughout the year.

"When the rates went down, the government adjusted the withholding tables," Romberger explained. "Because they were paying less through withholding, their refund goes down, because they were getting their refund throughout the year."

Romberger says a large refund check isn't necessarily a great way to organize your money.

"In a sense, you've giving the government an interest free loan," she said. "I mean, honestly, a refund is your money to begin with."

What about people who depend on their refund?

"I do recognize that some people use it as enforced savings," Romberger said, "and if that's the method you choose, than it's better than nothing at all, it's just not one that I recommend."