How do you explain to clients why their refund is smaller this year?

One response

1. When explaining a smaller refund to clients, it’s important to communicate clearly and empathetically. Here’s how you can frame your response:

   “You’re correct that less withholding often results in a smaller refund, and it’s really all about the numbers. When you have less tax withheld throughout the year, it means you’re taking home more of your money in each paycheck, which can be a good thing if you need more cash flow for your everyday expenses.

   However, a smaller refund can be surprising, especially if you were expecting a larger amount. Factors that might contribute to a smaller refund this year could include changes in your tax situation, adjustments to tax laws, or variations in deductions and credits.

   It’s important to look at the full picture: while your refund may be smaller, you may have benefited from having more money available to you throughout the year. If you’d like, we can review your withholding and tax situation together to ensure you’re on the right track for next year! Transparency is key, and I want to make sure you’re comfortable and informed about your finances.”

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