H&R Block has figured out what happened to peoples’ tax cuts last year.
The company said overall tax liability was down 24.9 percent. Wow, that’s great! But how come people didn’t feel 24.9 percent richer?
That’s because the IRS changed the withholding tables and people got that extra money in dribs and drabs in their regular paychecks. So tax refunds, according to Block, were only 1.4 percent higher despite the tax cut.
You just can’t take your money a little bit at a time every payday and still expect a big refund.
And, by the way, this is a better way to handle the family budget. Getting a big refund only means you lent Uncle Sam money interest free for the tax year.
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