TEMPLE, Texas — IRS statistics show a nearly 30% decrease in federal tax refund amounts between last year and this year, leaving many people upset and frustrated.
There is also a sentiment of feeling blindsided by the decreased refunds as many had plans, such as wedding payments, home improvements and paying off credit card debt with their incoming refund payments.
"Some people are getting less money back but it's not because there is less credits," said Adrian Carmona, owner and office manager of Conlon Tax Service. "It's because of a reduced withholding on their income tax forms."
Carmona said taxpayers should be very aware of how your withholdings are affecting that year's refund.
Richard Sanford with the IRS said that the refund decrease is because tax credits are returning to normal after they were inflated during the pandemic when people needed the money. Tax credits such as the child tax credit and the earned income tax credit that were raised then are now being lowered.
"Now they've gone back down to pre-COVID levels, these credits," Sanford said.
Carmona said in order to increase your tax returns for the next year, you should looking into changing your withholding.
"In order to increase the refund in a way would be to review their form W-4 with their employer. The W-4 form is the form that tells their employer how much or which way to withhold or how much taxes to withhold from their paycheck," Carmona said.
April 15 is when taxes are due.