PHOENIX — Four weeks into the filing season the US Treasury Department reports that the average refund is up by 1.3 percent over this time last year.
The increase is due primarily to Earned Income Tax Credits and Child Tax Credits being paid out to taxpayers over the past week, the agency says. Some taxpayers may still see a decrease in their refunds compared to last year.
Certified Public Accountant Roy Mitchell says there are 3 main reasons you may see a smaller refund:
- The loss of the $4,000 personal exemption
- A new limit on state and property tax deductions to $10,000
- A reduced paycheck withholding because the IRS lowered tax deductions
"The IRS adjusted the tables so less taxes would be taken out." Mitchell says.
But the adjustment also means there should have been more money in your pay check.