CHARLOTTE, N.C. — Tax season just got started and recent federal changes have many families in the Charlotte area are asking, "Where's the money?"
Accountants say they're seeing more people shocked at their smaller refunds and some people are even saying they owe the IRS for the first time ever.
"This is the first time that I've ever been taxed that high," one Charlotte mom said. "My taxes were like, $3,000, and hey, I don't make that kind of money."
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Reg Davies, the owner of Charlotte Accounting and Tax Services, says many others can expect some sticker shock when they file this year, namely in the form of a smaller refund or even a bill from the IRS.
“In 2021, the standard child tax credit went to $3,000 and in 2022, it went back to $2,000," Davies explained. "So they lost $1,000 in tax credit right there."
Still, that's just one reason people could be getting a smaller tax refund in 2024. He also says apps like Cash App and Venmo are requiring users to file for in-app transactions. Sometimes those transactions aren't business-related, so they could fall into the pile, depending on how big each item is.
Another common mistake Davies sees is incorrect W-4s, which costs people in the end when it's time to file their taxes.
To avoid some of those unnecessary fees, Davies says you should make sure to keep all of your in-app receipts and file as soon as possible. Anyone who files their taxes or asks for an extension before the April 15 deadline will avoid a late fee.
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