Tax expert says many Kentuckians might be upset after seeing their refund
(WKYT) - January 23 is the first day you can file your taxes.
Tax experts say you should go ahead and start thinking about your taxes now. However, they say a number of people may not be too happy when they get their refund this year.
“Start organizing their tax information right now. Take out their tax return from last year and use that as a guide for what to assemble for this year,” said Dana Overall. Certified Public Accountant.
Overall says getting that groundwork done now can help relieve some stress toward the filing deadline, especially if you end up having questions. He says there could be a number of people asking the same question this year: what happened to my refund?
“People should absolutely expect smaller refunds this year, and it’s going to hit mostly the American families,” Overall said.
Overall says that there weren’t many changes to tax codes, but the number of deductions you can apply for got significantly cut.
“What was considered the enhanced child tax credit has been reduced,” Overall said. “Last year, that credit was for children under six. It was $3,600 per child under six. This tax season, it reversed back to $2,000 per child.”
Accounting for pandemic stimulus credits not being on this year’s returns and the reduction in childcare tax credits, Overall says, families are going to be hit the hardest.
“It’s going to be a 1, 2, 3 punch to a lot of American families,” Overall said. “They’ve kind of gotten used to a pretty substantial refund for a lot of people. This year it’s going to be substantially lower.”
Overall says you’re going to want to stay on top of your filings this year and suggests you go ahead and file for an extension now if you think you might run into trouble.
He says that doesn’t mean you can’t still file early, it’s just an added bit of insurance.
Overall pointed out one other benefit to filing sooner, you’ll get your refund sooner. He says if you’re late, or to the last minute then that could mean your refund will take longer to hit your bank account.
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