Answers to worries about tax reform, refund size and refund delays for Reno taxpayers

January 28, 2019 : Linda Hagen

Ready or not, tax season is here and this year is going to present unique challenges. From tax reform to refund delays and big swings in refund size, it’s going to take some work for people to untangle their tax situations. The good news is that H&R Block is ready to help and has been preparing since the moment tax reform passed.

Tax reform impacts everyone

Tax reform impacts everyone differently, depending entirely on their specific circumstances. It’s important for people to look at their unique situation to see what they should expect when they file. Tax reform impacts virtually everyone with new tax brackets and tax rates, but other changes especially impact families, homeowners, and the self-employed.

Tax reform and withholding changes could mean swings in refund size

While most people will come out ahead overall, it won’t feel that way for the people who will get a smaller tax refund, or will end up owing, because they got their tax reform benefit through bigger paychecks. The potential for surprises comes from updated IRS tables employers use to calculate tax withheld from an employee’s paycheck. These changes generally resulted in bigger paychecks and less tax withheld starting in February or March, even if they took no action.

Anyone who updated their withholding with their employer after the IRS made its adjustments in February can expect the withholding outcome they planned for when completing their W-4. It is everyone who did not update their W-4 who is most at risk of significant changes to their refund or balance due.

For those who don’t like what happened with their refund this year, they can make sure it doesn’t happen again next year by updating their withholding with their employer. H&R Block tax professionals will provide W-4 planning for clients when they file their 2018 tax return.

Some refunds also held until mid-February due to government-mandated delay

The IRS is required to hold refunds for returns claiming the earned income tax credit (EITC) and additional child tax credit (ACTC) until mid-February. Approximately 30 million taxpayers claim the EITC or ACTC, with half filing early, which means as many as 15 million taxpayers could have their refunds delayed until mid-February.

For taxpayers who want access to money faster than the IRS can provide a tax refund, H&R Block is offering the Refund Advance loan* of up to $3,000. The Refund Advance, a no-interest loan from Axos Bank™ is repaid from the client’s federal or state income tax refunds. If approved, clients will typically have access to money within hours of applying.

Taxpayers can learn more about the Refund Advance or schedule a tax appointment with Linda Hagen  online or by calling 775-786-8868.

Related Resources

Answers to worries about tax reform, refund size and refund delays

Learn about how tax reform may affect your refund. From tax refund delays to changes in your refund size, you’ll know what to expect.

H&R Block Tax Identity Shield® helps protect tax identities

Check out the latest updates now available with H&R Block’s Tax Identity Shield. This is just another way the tax experts are trying to keep clients safe.

H&R Block data shows taxes down 25 percent due to TCJA impact

Learn about the TCJA impact on taxpayers this year. H&R Block explains why some people had smaller refunds although their taxes went down and the importance of W-4 help.

20% qualified business income deduction overview

Learn more about the latest guidance and regulations on the updated 20% deduction that tax reform gives some business owners and independent contractors.

Linda Hagen

Linda Hagen

H&R Block

Linda Hagen is a senior tax analyst for H&R Block, the world’s largest tax services provider. Linda provides expert tax advice and preparation support for taxpayers in the Reno area. Linda can be found at the H&R Block office located at 1155 W. 4th Street Suite 114 or by calling 775-786-8868.

Connect with us