Millions of Americans could be surprised by shrinking tax refunds

BOWLING GREEN,Ky.-Millions of Americans are filling out their taxes. Some people expecting to receive a refund are finding out that they owe money.

The average tax refund check is down eight percent this year in comparison to last year, according to the Internal Revenue Service. The IRS has also reported that the number of people receiving a refund has dropped by almost a quarter.

This tax season people are seeing the impact of new tax laws. Many have hoped the new laws would lead to larger refunds and easier tax preparation.

So far that has not been the case.

“A lot of people have been hearing in the news is that they’re not getting the biggest refund, and people are focusing on their refund. What they actually need to do is compare their prior year tax due to their current year tax due before the money they’ve paid in is taken into account, because that’s where it changed,” said Rebecca Cohen, Manager and tax specialist at Carr, Riggs & Ingram in Bowling Green.

Cohen also said that people in Kentucky should be aware that the current tax rate is now 5 percent, and witholdings have been adjusted.