As Tax Day approaches, many taxpayers are looking forward to refunds. If you’ve filled out your tax return and found that your refund isn’t as large as last year’s, though, you might be disappointed. There are many reasons your refund might be less than in years prior, and our trusted tax team can help you get to the bottom of things.
So, what sorts of issues can cause a decrease in your refund?
A Change in Your Withholdings–or a Lack Thereof
Many life changes can impact your tax return, including a marriage, divorce, addition or removal of a dependent, or the addition of a second income. Most of these circumstances are taken into account on your W-4 form, which estimates your taxes for withholding. Our Sacramento area team can help you make the right call on tax withholdings, but the bottom line is that your withholding directly affect your refund or payment amount come tax time.
A Change in Payroll
Many businesses were impacted by a 2018 tax overhaul that directed employers to follow new withholding tables. The result, for many taxpayers, was lower withholdings and larger paychecks. This could significantly diminish your refund. Our Sacramento area team can breakdown the withholdings on your W-2 form to see if you were impacted by this change.
A Mistake or Miscalculation
If your refund is drastically off, as opposed to a big lower, chances are that something is amiss aside from changes in withholdings or policies. The trusted tax professionals at Paramount Tax Relief can go over your return, as well as last year’s return, line by line to find any errors or mistakes you may have made to resolve the issue. A missed line or a misplaced decimal can wreak havoc on the outcome of your return, but we can get to the bottom of it.
To maximize your refund and ensure your taxes are done correctly, you can count on Paramount Tax Relief. Be sure to contact us online or to call our team at (916) 533-9940 today.