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Why a smaller tax refund in 2019 might be a good thing, even if it doesn’t seem that way

Why a smaller tax refund in 2019 might be a good thing, even if it doesn’t seem that way
Federal tax forms for 2018. (Keith Srakocic / Associated Press)

To the editor: It is incredible how uninformed (or misinformed) many people are about taxes and refunds. What the “angry filers” need to do is compare what they paid in taxes in 2017 versus 2018, not their refunds.

As the article points out, 80% of filers (mainly low- and middle-income) paid less as a result of the tax cuts. If people receive a smaller refund this year, it is because they received more money in their paychecks during the year. The new tax withholding tables are meant to divert an amount that more accurately reflects what the taxpayer will owe for the year.

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If a person wants a larger refund, there is a simple solution — opt to have more withheld from every paycheck throughout the year. Of course, most people who do this will be angry because their checks will reflect less take-home pay. Sorry, you cannot have it both ways.

The “angry filers” need to read this excellent article if they want to have a better understanding of taxes and refunds.

David Powell, Encino

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