Very low tax refund, does that mean I got more money on each paycheck?
The last 2 years I’ve had very low tax refunds compared to what I’m used to. I know it’s because they changed things to where I’m getting more money on each pay check, but am I getting the same amount of money with bigger paychecks and no refund as opposed to smaller paychecks and a big refund?
- STEVEN FLv 79 months ago
It means your withholding was close to your actual tax liability.
The TOTAL amount is the same either way.
- ShayLv 79 months ago
Yes - it means you kept your money when you were paid instead of letting the government hold on to it for you.
Low refund simply means it was never taken out of your check to begin with.
- JudyLv 79 months ago
- SlickterpLv 79 months ago
That is what it means, yes.
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- StephenWeinsteinLv 79 months ago
You are not getting the same amount of money. You are getting more money. The lowered the total that the government keeps, so each person gets more money. (There are a few exceptions, such as those who used to deduct large amounts of state and local taxes on Schedule A and those with large numbers of adult dependents, but these are unlikely to apply to you.)
- danxp2Lv 69 months ago
When you look at each year individually yes you are getting the same amount of money with either more on each paycheck or more of a refund.
There maybe some rounding as IRS refunds whole dollars and you can have cents withheld you might never get back, but within a few dollars the amounts are the same.
- Anonymous9 months ago
basically, yes .........................................
- A HunchLv 79 months ago
The tax rate decreased for most people, thus for most people you are getting more money and paying less taxes.
However, in your specific case, there is no way for us to know. For example:
- if you are earning more money, then you are going to pay more taxes