One Colorado woman was shocked to learn she owed more than $8,000 in taxes to the federal government this year -- and that tax returns, in general, are lower.
Isadora Bielsky, of Denver, has long done her family’s taxes herself, and last year, their refund topped $3,600, she told local media. This year, her tax bill brought her to tears.
"I go back, I check all the numbers. Nope! That's real. We owe more than $8,000. And I started to cry," Bielsky told KDVR-TV.
Bielsky said she used the IRS' recommended withholding. But those recommendations don’t recognize a new cap on local and state deductions that came as part of President Donald Trump's new tax law, according to KDVR-TV.
In fact, the average refund compared to last year has dropped nearly 9 percent, KCNC-TV reported, citing the IRS. Last year, refunds averaged around $2,100. However, refunds this year are averaging about $1,900, the IRS said.
William Gale, co-director of the Tax Policy Center, told KCNC-TV many Americans did get a tax cut; but if they made the correct changes to their withholding, the money may have wound up in last year’s paychecks in smaller amounts.
“It is important to go check your withholding and update your W-4 if you are surprised this year because it is really critical to get your tax situation and your withholding amount to the proper amount so you don’t have a surprise again in 2019,” said IRS spokesman Matt Leas.
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