RENO, Nev. (KOLO) It is estimated on average the tax return for 2018 will be 8.4% lower than 2017. This is a result of the new tax plan—on several levels.
Standard deductions for a single person or couple have changed. So have the rules on what can and can’t be itemized. The more allowances claimed on a W4 Form, the less likely a tax payer will receive a larger refund at the end of the year.
That apparently is just now being realized by some who are filing early tax returns.
"So if they didn't go in and change it, they were getting more in their paychecks. And if they were getting more in their paychecks. It was kind of like the IRS was saying, 'Oh, so you are getting part of your refund now, instead of at the end of the year.' And that is what was happening and people weren't understanding that," says Debbie Grodecki, an H&R Block Office Manager in Reno.
Grodecki says H&R Block will provide tax filers with information for 2019 as to whether they want to modify their W4 Forms.
You can call the form up yourself on the IRS website and hand it in to your employer, should you want more money taken out now, and receive a higher refund at the end of the year.
Under the new tax law, deductions many families depend upon, such as home equity interest, moving expenses, and job-related costs are gone.