Why didn't the Trump tax cuts help me any per my tax return?
Generally speaking I very much support Trump. Per his tax cuts awhile back, I was very much looking forward to getting a bigger tax refund. I did my taxes the other day and was very disappointed that I will get back no more than usual. I am married with two kids. Economically we are probably lower middle class. Thanks!
Last year my refund was $6,657. This year it is actually lower at $6,338.
- Steve DLv 72 years agoFavorite Answer
There could be a number of reasons your return was about the same, some of them not tied to the new tax rates. Start by comparing your weekly Federal tax witholdings. If you made about the same amount of money but had less withheld, there is your tax break - you have been seeing it in small increments each pay day. Second, the tax break was directed to upper income people - most of the reduced taxes went to those in the top 20% of income and corporations. Third, if you made more money this year, it is possible that extra money kicked you up a tax bracket resulting in you paying more taxes.
Remember that your tax return is based n a few things and is not necessarily correlated with your actual tax rate.
- 2 years ago
Why do you think a tax refund of over $6,000 is a good thing? You are giving control of $120/week of YOUR money to a government that has proven they can throw it away quicker than you can toss the Sunday paper. You should speak with someone in your payroll department.
- ?Lv 62 years ago
The Tax Cut gave you MORE take-home money.
- JudyLv 72 years ago
Did you get more in your paychecks? Have less taken out through the year? If so, you already GOT your extra
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- curtisports2Lv 72 years ago
You do NOT look at what you get back. What you get back is 100% dependent on what you paid in withholding during the year. What you get back is what you paid in withholding during the year minus the actual tax you owe, if you paid in more than the tax.
Because the tax rates went down across the board by 3%, you would have paid in less in 2018 than you did in 2017. If the changes to the tax law resulted in you owing less tax for the year, and it probably did, then it's very possible for your 2018 refund to not be much more or less than it was for 2017.
What you look at to see if the change in the law helped you is to look at your actual tax for 2018 vs what it was for 2017 - NOT the refund amount. If you paid less tax for 2018 than you did for 2017, on the same income or more income, then the changes helped you.
- Beverly SLv 72 years ago
Did your paychecks during the year go up? If so, that's where you got the increase.
- Trivial OneLv 72 years ago
The measure isn't how big your refund was. The measure is how much actual tax you paid on your 2017 return versus your 2018 return. The tax tables were changed, lowering the amount of tax withheld each check. That alone would lower any refund you were used to getting because you got a little more in each check instead. Then, deductions and credits were changed (temporarily). Some of those credits would have increased your refund. It sounds like those credits about equaled the difference in withholding for you, so you did pay less tax.
However, keep in mind that those credits will expire over time, which will result in you paying more taxes. With the lower tax tables, you can count on having to pay in at year end rather than getting any refund. The tax cut for the middle class is only a temporary short-term one. The tax cuts for the wealthy are on-going.
- Anonymous2 years ago
Your refund wasn't any bigger because your employer withheld less tax. Your tax cut was in every single paycheck you received.
Ding dong. Wake up. Tax refunds have nothing to do with tax cuts or tax increases. A refund happens when you have overpaid what you owe - REGARDLESS of whether you owe $1000 in tax or $10,000 in tax.
- ?Lv 72 years ago
Withholding tables were lowered to compensate for the tax cuts, so you may not have had as much withheld from your check(s) as you did the previous year. The child tax credit was doubled however, so you should have gotten more back from that.
- Wayne ZLv 72 years ago
Most of the tax cuts went to the wealthy; the people Trump really cares about.
In reality, if you compare your 2017 and 2018 tax liability, you will probably see that your 2018 liability is a bit lower than 2017.
However, beginning in February of last year, the government had employers take less out of our paychecks. As such, many people are experiencing refunds that are on par with last year or even lower.
I ran an estimate for someone a couple of months ago. His refund in 2017 was around $1500. Like you, he assumed that it would be higher this year. While his taxes dropped by about $1000, his withholding had dropped by around $1800. This left him with a refund that was $800 lower than last year.
- AmyLv 72 years ago
Are you a multi-billion dollar corporation?
If no, then you didn't get a tax cut.