If you’re banking on a tax refund, it may be smaller, or you may owe money this season, according to financial experts.
Typically, you get a federal tax refund when you’ve paid or withheld more than the amount you owe, based on taxable income.
“Working families are not expecting this,” said Tommy Lucus, a certified financial planner and enrolled agent at Moisand Fitzgerald Tamayo in Orlando, Florida. “And it’s going to be a shock to them.”
For example, if you qualified for a $3,000 tax credit and received payments for $1,500 in advance, you will claim the $1,500 balance when filing a tax return.