Tax season is at the corner and many taxpayers across the country will start experiencing low to high fever about the tax issue this year. Well, if you are self-employed and you don’t have a good accountant like Mr. Peter Deng of Peter Deng Tax Service then your fever could even go higher, and it is understandable.

Everything is fun in America, but taxes are not fun to deal with, during the tax time many taxpayers who haven’t paid their good share of taxes during the year ended up paying big to Uncle Sam and State department of taxes during tax time. Business People end up paying millions of dollars back to the IRS and State department of taxes and even the local taxes. Homeowners also pay for their property taxes and so on.

Despite the fact that tax time is not fun, and it is a season that is not celebrated by everyone, well there is still one group of people that look forward to the tax season knocking at their doors. The low-Income American group is the one being favored by the tax system. Low-income American families takes home every tax season millions of dollars in tax refund. The family of 5 members earning yearly wages of $18,000 to $25,000 could take home a refund amount of over $10,000 which is almost half their yearly income. This group is expected to get a big refund this tax season compared to last year.

Last year’s tax season was the worst tax season ever with the families not getting full child tax credit refunds due to the advance payment that was made out to them during the year by the IRS. Families who used to rely on their tax refund to survive were affected so badly for something that was poorly planned by people in power that changed tax rules. This coming tax season is different because no child tax credit payments were made in advance like last year, and so families with less income are expected to get a big refund this year. 

It is going to be a big tax season for families with children and who make less income at the same time.

The side effect of the advance Child Tax Credit payment
As the Coronavirus hits the universe, the world leaders and normal citizens scramble in circles not knowing what to do or where to go just like a poor fly in the closed bottle. Companies begin to shut their doors, people start quitting their jobs or being let go by the employers for the fear of catching Covid-19. People stayed home more and that meant more food was consumed. As people began consuming more food, the savings account began to run out of money especially in America. People begin to leave from hand to mouth. To make the matter worse, American people are not good at saving and therefore, were hit harder by the Covid-19. The citizens didn’t know where to begin, the only way out was to start yelling at the government for help not knowing that their government is still in debt with the Chinese government. But, nevertheless, the government issued three stimulus checks to the people. Thanks to former President Donald Trump who put people and small businesses first. 

One would think that three stimulus checks were enough for people, well it wasn’t. It in fact activated what I called the mentality of wanting free money while using covid-19 as the reason for wanting more money. The demand for needing more and more money on a monthly basis grew and the best thing the government could do was to fool the taxpayers by paying the Child Tax Credit in advance instead of waiting until the tax file time. Smart technique, I call it. The families have been happily collecting their Child Tax Credit advance payment without thinking that they are eating into their tax refund in advance. This is something hard for the taxpayers to understand right now because their government plays a smart game on them but will all surely understand in this upcoming tax season.

This Child Tax Credit advance payments that taxpayers have been collecting is going to affect the refund amount families with children usually expect or supposed to get during the tax file season. The government is way smarter than you “taxpayer” and knows what is in the cup. Instead of giving you free money like what other governments in developed countries have been doing for their citizens, the U.S. government decided to pay you your tax refund in advance to make you feel that your government cares about you. For sure the government cares about you but the bottom line is that you are not going to be super happy in the upcoming tax season. But don’t worry if you live in Vermont, Peter Deng Tax Service has already figured out everything for you and is ready to get you your big refund as usual.

Now that you know you have been eating and continue to eat into your future tax refund you may need to plan carefully especially if you don’t have access to Peter Deng Tax Service or any other good tax service. The good news is Peter Deng Tax Service’s office can help you still get your normal refund or even bigger refund if you live in Vermont where Peter Deng Tax Service office is located or you are able to connect with us at www. peterdeng.com or Stop by at 139 Elmwood Ave, Burlington, VT 05401 or call 802-393-9507. Come back again for articles related to tax and finance.