Law Offices of Robert T. Leonard, APC
Free Consultations Available
Toll Free 888-408-9486
818-224-7935

If you think you paid more in taxes, you're probably right

The saying “It’s refund season” is more than just a catchphrase. For many Americans, it is a reality that fuels their entire year. For the next coming weeks, millions of returns will be filed with the hope (or expectation) that they will receive money back.

However, for many, they may not receive as much as they had hoped in a refund. In fact, Americans paid more in taxes in 2015 than they did in 2014. According to a report by the Tax Foundation, Americans paid 10 percent more in taxes last year compared to 2014, which amounted to an additional $129 billion paid in federal income taxes.

So how does this happen? This post will highlight an explanation. 

Essentially, the U.S. Tax Code is designed to increase taxes faster than people’s incomes. So even though people earned more (due to an improving economy and job growth), they ended up paying more because their incomes pushed them into higher tax brackets. As incomes increase, there may be fewer deductions that may be available, and the impact of remaining exemptions may not be as valuable.

Because of this, even though Americans’ incomes increased by 6.1 percent compared to 2014, they ended up paying 10 percent more in taxes in that same period.

However, as we noted in prior posts, making more money does not always mean higher taxes if you are able to maximize all the deductions and exemptions that are available to you. If you have questions about how to make these work for you, an experienced tax law attorney can help.

The preceding is not legal advice. 

No Comments

Leave a comment
Comment Information

Send Us A Quick Message

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Law Offices of Robert T. Leonard, APC

Woodland Hills Office
21700 Oxnard Street
Suite 2060
Woodland Hills, CA 91367

Toll Free: 888-408-9486
Phone: 818-224-7935
Fax: 818-587-3833
Woodland Hills Tax Law Office

Los Angeles Office
10100 Santa Monica Blvd.
Suite 300
Los Angeles, CA 90067

Toll Free: 888-408-9486
Phone: 818-224-7935
Fax: 818-587-3833
Map & Directions

Call Today