Family anticipating a tax refund shocked to find they owe $5,000

Automatic TRANSCRIPT

A lot of Americans are expecting an unwelcome surprise from the IRS. They're learning their tax refund is not what they expected or maybe they have to pay according to the IRS. The average refund has dropped nearly nine percent this year. Anna Warner spoke to one woman that says tax Bill left her in tears, streaming of using your tax refund. This year to go on a trip, maybe pay off some debts better. Wait until you do the math. Some people are getting a shock. They owe thousands of dollars like the Colorado woman. We spoke to who said when she did her taxes this year, she was floored. The truth is we've always gotten a refund. So I like to sit down as early as possible because I want my money back door Bielski says last year her family of forest tax refund top thirty six hundred dollars. But this time around when she did their taxes. I plugged it all land and at first I thought, oh my goodness. We're getting eight thousand dollars back, and then I realized. It was the wrong color. So I went back in and I checked everything. And then I started to cry Owen just over eight grand was bad enough. But Bielski says it felt even worse because last year she went on the IRS website to make sure the government withheld enough taxes from she and her husband's paychecks. I have a PHD in neuroscience. My husband has an MD if we can't rely if we can't figure this out, and we can't rely on the IRS and their calculators to give us the right information. What are we supposed to do a lot of households live paycheck to paycheck and the refund is the single largest payment? They get all year. William gale is co director of the tax policy center. He says many Americans did get a tax cut. But unless they made the correct changes to their withholding the money may have wound up in their paychecks last year in smaller amounts, the IRS had to tell people what to withhold and it's a difficult. Problem for tax payers, of course. But it's even difficult for tax experts at the IRS the IRS says last year refunds averaged around twenty one hundred dollars, but this year, so far it's averaging around nineteen hundred dollars. Matt leases with the IRS is important to go and check your withholding update your W4. surprises here because it really is critical to get your tax situation, and there was holding mount to the proper amount. So you don't have a surprise again in two thousand nine hundred a very unwelcome surprise says Bielski, I believe in paying taxes, but you can't expect average Americans who have bills to pay and things they wanna do to save money that they don't know they're going to need most people haven't filed yet, and the IRS doesn't know how many others may be in the same boat. One word of advice, though, if you can't afford to pay what you owe in a lump sum do reach out to the IRS it does offer payment plans, and while painful that will be a lot better than the. Alternative facing some stiff penalties that would cost you even more money. That's Anna Warner reporting the twenty twenty four Olympic Games in Paris may have a new look to the mission of athletic competition. The local organizing committee in Paris is looking to add four new sports to the games in five years. They include skateboarding surfing and rock, climbing, those three pretty normal, fourth one might raise a few

Coming up next