SPRINGFIELD, Mo In Missouri you may see a lower state tax refund or end up having to pay come tax time.
This comes after a mistake by Missouri and a change in federal tax laws. This only affects your state tax refund.
After the federal tax cuts were passed in February... Missouri had tax tables for withholdings for state taxes that were figured incorrectly and that led to a deficit in the withholdings.
So while you may pay less in federal taxes this year, you could end up paying more to the state of Missouri.
"And with the new tax act that was passed, most people are going to be paying less federal taxes, which means that that deduction on the return from Missouri taxes paid will be lower." said Tiffany Cossey, an accounting professor with Drury University. "What that term means is that enough taxes from Missouri will have not been withheld from the pay of some people and they may end up getting a smaller refund than they normally do or might actually end up owing at the end of the season."
Coffey says that while everyone is going to be affected by this... some people were able to go in in the middle of the year and change their withholdings from their employer.
"The impact should not be nearly as much as if they did not change their withholdings midyear." said Cossey.
But for those who did not make those changes...
"Their refund could end up being reduced or they could end up having a balance due. For most people it won't be huge, it won't be thousands of dollars but they may end up with a balance due of a couple hundred dollars if they were significantly under held." said Cossey.
Although it is too late to change that... you can meet with your tax professional right now.
"They may be able to determine how it is going to impact you. They will at least be able to give you a good estimate of how it is going to impact you." said Cossey.
Cossey says if you end up owing the government at tax time you can arrange a payment plan with the state to help with reasonable payments.
For the IRS' withholding calculator Click HERE