Why You Might See an Unexpected Increase in Your Refund (Even If You’ve Already Filed!)

Did you get a letter from a state tax agency INCREASING your refund? Is it fraud? Maybe not. With the new Federal tax laws, there are a few states that are STILL debating whether to conform to the new laws AND a few that have made retroactive changes to their tax rates. And they have not released the upgrades for all the tax software programs. Some are even using tax tables that were not released to the software companies. We have seen letters issued within 24 hours to clients telling them that their refund has increased by $X.

One clue- if a tax authority gives you a change that is a weird number like $83.27, that’s a math change. When they give you exactly $80, that’s a policy change.

The joy of tax bills passed in the summer 😊