This year’s tax season has been full of changes.
“I think the higher end people made out better,” said Certified Public Accountant Ed Lorah.
There were also some surprises.
“A good fifteen hundred dollars less,” said one woman who did not want to be identified. She says her refund was less than expected. “Oh way less.”
“Middle income did not do so well,” said Lorah who owns a Waterford accounting firm.
He says in his 33 years he’s seen the most changes ever in 2018.
To start with, the new tax code took a little less out of people’s paychecks throughout the year giving them more money in their pocket.
“A little bit more money here on the check every week,” said Trace Chaperon who is staying in Niantic.
There were changes some people liked like a higher standard deduction, higher tax credit for kids, and a drop in the tax rate. But there are no more personal exemptions.
“A family of five with a husband and wife and three kids you lost $20,000 in deductions. Now with a two percent drop in your rates there’s not enough there to make it up,” said Lorah.
Those who didn’t realize they were paying less in taxes throughout the year were surprised by a smaller refund or owing more money to the IRS at tax time.
“If you had husband and wife and they got $50 more in their pocket each week because of the last year changes at the end of the year they’re five thousand dollars difference from what they used to get,” explained Lorah.
But there is a way to offset this difference for next year. On your W-4 form you can add an extra dollar amount to be taken out of each paycheck.
“You can tell them plus $10 a week, plus 15 or 20, whatever you want,” said Lorah. “You don’t have to change any other part of the form.”
If you find this all confusing the CT DRS website lists some organizations offereing free tax help.