Tax Reform Could Impact Your Tax Return

The latest round of tax reforms is the largest in 30 years. Standard deductions increased for many Americans, and some who used to go through the painstaking process of itemizing their deductions will no longer have to do so.

People who will get the largest refund are those that have the largest gap between their total taxable income and the amount withheld from their paychecks. It’s possible to reduce your tax refund while increasing your paychecks by increasing the number of withholdings claimed on your W4 form. This one-page form is easy to change by visiting the human resources department of your company.

To get the largest possible refund, it’s a good idea to visit with a professional tax preparation service. For people who need access to their refund as quickly as possible, a tax advance from the tax preparer may be an option. Taxpayers who claim the Earned Income Tax Credit or Child Tax Credit will experience an automatic refund delay of six weeks.

If there’s another government shutdown, it could cause further delays with refund processing. There’s an expectation among big-name tax preparation companies that their tax advance services will gain popularity. If you decide to get instant access to your refund, be sure to understand the fees associated with the service.

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6 months ago