A $1.5 trillion tax overhaul that took effect at the beginning of 2018 may have gone under a few radars. As such, some citizens may not have noticed a few extra dollars added to each of their paychecks throughout the year. Those accustomed to receiving a $2,000 tax refund, for example, may see a refund amount of $300 to $500 less this year.
The IRS was closed during a crucial time early in 2019 due to the government shutdown. It may take time to catch up, but that’s no reason to put off filing your taxes. For those who count on their tax refund each year, it’s crucial to get taxes filed as soon as possible and take advantage of e-filing. Tax credits like the Earned Income Tax Credit and Child Tax Credit could cause further delays of tax refunds. Even so, refunds will be processed in the order they were received.
Now is a great time to think about how to spend tax refund checks. Families without an emergency fund should plan to set aside part of their refund to cover future unexpected expenses. Paying off high-interest and revolving debt will help people save more of the money they make this year, as well. Anyone who finds the new tax regulations confusing should consult a tax professional. Many communities offer free tax preparation services for low-income citizens.
