CLEVELAND — We are exactly one week out from the tax filing deadline.
Next Tuesday also marks the last day to request a six-month tax extension.
Experts say do not wait any longer and prepare to get less money back on your tax return than you have in recent years.
"It's been pretty easy. I did it online," Lorain resident Stephanie Schonhiutt said.
Schonhiutt did not hesitate this tax season.
She got her paperwork together and filed her taxes several weeks ago.
Her primary takeaway as she entered the Rock Hall was a noticeable and sizable reduction on her return.
"Less money. Yes, it was better during COVID, but that was an awful thing to go through," Schonhiutt said.
She's not alone.
Millions of Americans will be getting back less cash this year.
Experts say the average refund dropped from $3,200 to $2,900.
"It's the fact that a lot of the COVID era enhancements that the government put into effect to help out taxpayers during a tough financial time have gone away," Laura Schultz, Wealth Advisor at Preservation Retirement Services said.
Schultz says COVID-related provisions like getting part of your stimulus payment as part of your tax return are a thing of the past.
And those with kids will see the big benefits return to pre-pandemic amounts, as well.
"Some tax credits were enhanced, The Childcare Tax Credit, the Child Independent Care Tax Credit, those were higher than their usual levels. And COVID credits, again, to help out folks," Schultz said.
Schultz says in the interim, be proactive and look ahead to next year.
Adjust your withholding so you're paying the least amount of tax possible.
Ideally, you want to have just enough withheld, so your refund is as close to 0 as possible.
"If we're doing it right, you want to see, you know, close to close to break-even as possible. You shouldn't be getting too much money back," Schultz said.
In addition—sit down with an expert and look to the future.
"You can potentially take advantage of some different deductions or make contributions to a retirement account. For example, if you're working with your tax professional, your financial professional, you can think about those things proactively," Schultz said.
And most importantly, if you haven't filed yet and know you need more time—file an extension now with the IRS to avoid fines.
Schultz also says if you have a lifestyle change—maybe you retired, got married, or got divorced—talk with a tax preparer.
You may be in a different tax bracket.
There are several free tax help-related services in Cleveland for those who qualify.
Salvation Army and Step Forward are both offering free services.
You must earn $60,000 or less.
For free services in the area, click here.
