Yes! This is correct! When the Government was trying to rescue the economy they came up with the Stimulus package that basically made the employers withhold less money from their employees paycheck.
Thus, your Tax Federal Income Withholding was less than prior year and you got to keep more from your paycheck and Uncle Sam received less in Federal Income Taxes. So, during time of your tax filing, your potential tax refund, assuming no change in income and deductions from prior year, would be less than the tax refund you received from the prior year!
This is going to be quite troubling experience for a lot of taxpayers hungry for a large tax refund! |