SAGINAW, Mich. (WNEM) – Expectations of a tax refund are high for many when filing taxes, especially this year as prices for almost everything continue to rise, but this year many Americans planning to pay for family trips with their tax refund might notice lower returns.
With the tax deadline just weeks away, the president and CEO of Michigan Public Accountants explained what could cause tax returns to come back lower than expected.
Bob Doyle said the main reason so many people may see a lower than normal tax refund this year is the child tax credit.
“The Child Tax Credit. For parents who took advantage of it, you might recall that from July to December, depending on the number of dependents, the government sent payments,” Doyle said. “It was actually an advance that now has to be accounted for on your taxes.”
Doyle said if you only get a small tax refund each year, that’s actually a good thing.
“Because what you’re really doing is giving the government an interest-free loan, because it’s your money. So you want to work with your human resources department, make sure your deduction is appropriate, so you get the right amount taken from your paycheck,” Doyle said.
If you’re someone who likes to see a bigger refund come tax time, Doyle said to consider taking more taxes out of your paycheck.
He said if that’s the case, there’s a little extra time to pay the debt to Uncle Sam.
“In fact, this year, tax day is April 18 instead of April 15 because of the holidays there. So you can wait until April 18. They actually have a way that, rather than even mailing that check, can come directly out of your account electronically on that date. So there’s no reason to give it away sooner,” Doyle said.
Copyright 2022 WNEM. All rights reserved.