I OWE HOW MUCH IN TAXES?
March 18, 2019 - Douglas Myser
I owe how much in taxes ? As the Tax Cuts and Jobs Act unfolds, and tax returns get filed, its becoming apparent that in certain situations, taxpayers are actually owing more in tax, not getting that anticipated refund that the President spoke of from his election campaign. The first tax filing under the new federal tax law is proving to be surprising, confusing--and occasionally frightening--for some Americans, especially those accustomed to getting money back from the government. Take Andy Kraft and Amy Elias of Portland, Oregon. The couple had grown comfortable getting a small refund each year, a few hundred dollars or more. Then they found out they owe $10,160 this year.
"I will never forget the moment, I thought "We look good, and then we added in the next W-2 and my jaw hit the floor," Kraft said. "There was no way I wanted to believe that what I was looking at was real." President Trump promised a reduction in taxes with the new law. And by most measures, the majority of Americans will see one. The nonpartisan Tax Policy Center projected the tax law would reduce individual income taxes by about $1,260 on average, although it benefits higher earners more.
Some people already saw the benefit in the form of bigger paychecks. That's because the law forced employers to change what they withheld. But the system is far from perfect and many workers didn't have enough in taxes set aside. Now, the IRS wants that money. In addition, the law also eliminated personal exemptions, increased child credits, limited popular deductions and generally upended many familiar practices that determine what happens at tax time. That has taxpayers felling a bit unmoored. With many saying I owe how much in taxes ?
Many Americans have come to rely on the annual refunds that the government sends to them, and not getting those refunds can upend many financial plans, of lower income households. The IRS has reported that the average tax refund was $1,949, down 8.7 percent from the last year. If you ended up owing taxes instead of getting an expected refund, call our 35 year old Tax Resolution Services firm for every option under the sun for Tax Relief, including the IRS Fresh Start Program, and all the options not listed in that program. Then you will have made the correct financial decision for your family, your job, your business, and your future.