Tax Preparers Warn: Your Refund May Be Smaller Than Usual This Year

President Trump

This year many Americans are expected to be less than happy about their tax refund due to last year’s sweeping federal tax overhaul.

You see, as part of the Trump tax cut con, withholding schedules were provided to employers which suggested less in withholding taxes then is normally the case.

The IRS and the tax-preparation industry has been trying for the last several months to persuade people to adjust their W-4s if necessary, using calculators they’ve provided that incorporate the tax changes.

The tax-preparation firms know that some customers tend to blame them, and not new tax laws, when the filers don’t get the refund they expect or end up with a larger tax-due balance than anticipated. That can send miffed clients away and cut into the preparers’ revenue.

According to the Los Angeles Times, the tax preparer, H&R Block, is preparing for drama in its offices.

They’re doing things such as extra customer education, employee training and even role-playing exercises to prepare for the financial mood swings ahead, reports the Times.

Jackson Hewitt’s training has also included role-play exercises, so that preparers can correctly respond to clients’ gripes.

“For many people, the filing event is the largest financial transaction of the year, and they really look forward to getting a refund,” Kathy Pickering, executive director of the Tax Institute, the research and analysis arm of tax-preparation giant H&R Block, said. “It’s what they use to pay bills, catch up on late bills or pay off their holiday expenses, for example."

“If they’re used to getting a refund of, say, $3,000 and now they’re getting one of $2,000, that could have a pretty significant impact,” she said.

-RW