The effects of 2018’s tax changes are starting to become obvious around the U.S. If you expected a big refund from your tax filing and didn’t get one, you are not alone. So far, the average tax refund amount has dropped by 17% this year.
This drop can have a big impact on people who count on their refund to cover bills and expenses. The effect can be even worse if you discover that you actually owe the Internal Revenue Service (IRS) thousands of dollars.
So, what happened to your tax refund this year? And what can you do to make up for the funds you expected to get?
Why Didn’t You Get a Big Refund This Year?
The 2017 Tax Cuts and Jobs Act brought about some big changes to the tax code in the U.S. Your tax refund may be smaller than expected because the Act:
· Eliminated Some Deductions
· Reduced Other Deductions
· Adjusted Tax Brackets
· Removed Some Exemptions
While the standard deduction was increased, it wasn’t enough for many families in the U.S. Tax refunds may have also been low if you did not adjust your W-4 form at work. In fact, it’s estimated that a significant portion of tax-payers didn’t withhold enough and ended up owing money to the IRS this year.
Can You Improve Your Refund for the 2019 Tax Year?
You can take steps to prevent a lower refund next year by making sure you adjust your withholding on your W-4 at work. Check out the W-4 Calculator offered by the IRS to ensure you are withholding the proper amount to cover your:
Making these adjustments can help you avoid a subpar refund for the 2019 tax year, so make sure you speak with your employer about W-4 adjustments. You should also monitor any additional adjustments to the tax laws, as they could have further impacts on your refund.
What Can You Do to Make Up for a Small Refund in 2018?
Planning to boost your tax refund for the 2019 tax year can be important, but what about this year? Many tax payers were counting on their refund to cover expenses. You can be stuck with debt you don’t have the money to pay. In some cases, you might even be facing additional debt if you owe the IRS money.
Fortunately, you have options to get the funds you need to cover for a small tax refund in 2018. If you needed a big refund and didn’t get it, you could turn to:
· A Car Title Loan
· A Home Equity Loan
· A Credit Card Loan
· A Personal Loan from a Bank or Credit Union
The exact loan you choose will depend on your circumstances. Some of these loans allow you to get funds in a day or two. Some have low interest rates and require you to have excellent credit, like personal loans. Other loans will not require perfect credit, like title loans.
Recover from an Unexpectedly Low Tax Refund
You have options to get the funds you need to handle a low tax refund in 2018. Look into your options for loans to cover any debt you may be experiencing today. You can also start planning now to aim for a higher tax refund for the 2019 tax year.