We’re in the thick of tax season and you may have heard talk of smaller refunds despite the new tax code.
So we checked in with local tax professionals on that and on the latest tax scam warnings.
On the national front, there’s been a lot of talk about smaller refunds despite the tax code change but locally that’s not necessarily the case. Upstate tax professionals explained why, and also emphasized the importance of filing early to avoid scams.
We caught Chad Walters mailing his taxes toda,y done by hand, fulfilling a New Year’s resolution.
“Handling things in paper just seems a lot more safe right now,” he said.
Understandably so, because tax scams are back, everything from phishing emails pretending to be from the IRS, to bogus IRS calls.
“File early. that’s the easiest way to avoid, or at least the most successful way to avoid getting hit by someone else filing either your dependents or yourself,” said Salil Mathur with Upstate CPA’s.
Salil Mathur with Upstate CPA’s has a pretty good take, not just on scams but on how the new tax code is impacting refunds.
So far, despite national news about lower refunds, he says a lot of early filers (who tend to qualify for credits) are seeing refunds on par with past years.
But he suspects the next round may see lower refunds.
“I think the next month and a half are the people who are going to be on the cusp, are going to be the ones where we are going to see the most drastic differences between years past and this year,” said Mathur.
He says that’s because many who once itemized will now have to take the new higher standard deduction, in part because of caps on things like property tax deductions.
But tax professionals are quick to point out, your overall tax burden may still be less than last year because your witholding in your paycheck decreased, so you saw more in our pocket all year long.
Walters saw a similar refund to years past, but also money back in his paycheck, so in the end he saved more.
Whatever the tax code, he says he would follow it to the letter.
“It’s the proper thing to do as an American citizen.”
Now, that’s just the type of guy to fulfill a new years resolution.