CHARLESTON, S.C. (WCBD) – Many are being unpleasantly surprised when they receive their tax returns.
Following the passing of the president’s tax plan, people were taking home some extra money. While it may have seemed great at the time, the lower tax returns because of it are hitting people hard. Returns are about $200 less than 2017 tax returns.
Employees who have a lot of business expenses are also feeling the pain because those expenses are no longer tax deductible.
“These aren’t the high income earners, these are the middle class people that need these deductions and depend on it to generate their refund and those things no longer count. That really wasn’t, I think, announced as well as it should have been,” said Barry Schneiderman with BKS Tax Service, Inc.
Some are filing their taxes and realizing they actually owe money. It was something that needed to be checked last year. Tour withholding may have needed to be increased and if it wasn’t you could be in for a rude awakening.
“We did a lot of planning saying you need to increase your withholding, and you need to change what you claiming during the year to plan for this. But a lot of people still didn’t do that,” Schneiderman said.
Tax pros say some people will want to wait until around the deadline to file because they fear they owe money, but they say its best to just rip the Band-Aid off and go from there.
You think it might be bad news, just don’t wait to file because you’re afraid of what’s going to happen. File, get your taxes done early, and if you do owe you’ve got until April to pay,” Schneiderman said.
The tax filing deadline is April 15th.