Some people receiving smaller refund checks

It’s tax season, which means some people are looking forward to a tax refund, but it might now be as big as it was last year. 

Even though taxes went down, your withholding could have gone down further. 

When the GOP tax reform bill went into effect in January 2018, people quickly felt the impact. 

Brad Ewerth, a CPA and certified financial planner, says a lot of people are receiving a smaller refund check because their withholding was reduced in 2018.

“I think people are going to be surprised on what they don’t get back this year because they got it during the year because everybody has short memory,” Ewerth said. 

The tax reform is affecting everybody differently. If you have high real estate taxes or have high reimbursement expenses, your pocket is going to feel it. 

“There’s some caps on certain deductions, there’s some that have been eliminated and so there are clients that have a higher taxable income this year than last year,” Ewerth said. 

Ewerth says financially it is better to have a lower withholding throughout the year, and do something smart with your money while you have it in your pocket.