Why is my tax refund SMALLER ?!?

Tax refunds seem to be smaller this year. The refunds sent out so far are lower than last year and more people owe taxes. Doug Hord from My Tax Guy in Houston says that's not a bad thing. "You're giving the government a tax free loan all year long if you are getting a refund back. The goal should be to come as close to $0 as possible."

Hord says the IRS tweaked the withholdings tables again to bring you back to a zero result. He reminds you that the standard deduction has been increased - so most of you who own a home won't be itemizing this year. "It's no longer rational to expect to get a large refund back. It's only probable if you have several children."

Couples are often surprised with additional tax due when they file. "If you're married, and you and your spouse make a good income, my suggestion is to select 'Married - But tax at the Single Rate.'" Hord suggests single filers enroll in an automatic savings program to avoid the shock next year.

Remember - file by April 15th -- it's a Wednesday this year.


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