JACKSON, MS (WLBT) - Tax season is in full swing, and some Americans are receiving an unwanted surprise.
You may have had big plans for your tax refunds, but, not so fast, you may be getting less than last year. Many Americans are shocked by their smaller tax refunds so far in 2019.
Dr. Nancy Anderson is a CFA and President of New Perspectives. She explains the difference in this years tax season.
“They changed the withholding tables with the change in tax law," she said. "A lot of people saw a little extra on their paycheck every month, but we don’t register that. Instead they are still counting on that big refund, and because of the change in withholding tables, a lot of those have disappeared. In some cases, they are finding they have to pay into the system.”
Dr. Anderson advises you to be smart with your money and view your refunds as another paycheck, instead of extra cash.
“We still have this mindset of having a lump sum. Having that lump sum means ‘I have money to do something special; work on the house, take a vacation.’ We forget that really, it is something we have over paid during the year.”
Dr. Anderson shares one strategy to help you better prepare for next year’s tax season.
“If a big refund is important to you. You need to go back to your Human Resources department and look at increasing your withholding’s, so you have some of that for savings.”
But, Dr. Anderson says she doesn’t always encourage that.
“Think if you’re even you are fine. You need to save on your own outside of that.”