Lexington County tax preparers caution their clients not to expect big refunds.

Tax officials say some refunds may be larger than usual but many may not. Results, they say, will vary based on what taxes already were taken out of your pay during the year.

Most households got tax cuts under the reforms, but tax cuts and tax refunds aren’t the same thing.

Think about it this way: A refund may look like found money. It isn’t.

It is the money the government owes you for taking too much money out of your paycheck all last year.

You made interest-free loans to the federal or state government. Unlike an interest-bearing bank account, the government used your money but will pay you no interest for doing it.

Think of yourself and your next door neighbor. Because each of you got a $500 tax cut, both of you may expect a $2,000 refund.

But you paid $25 a week less in federal taxes in your last 20 paychecks due to IRS changes in withholding.

You should get the same $2,000 refund as last year.

Your neighbor is a self-employed contractor. He made no change in his withholding nor his quarterly estimated-tax payments.

His refund may be $2,500 – $500 more. But that $500 was an interest free loan he gave Uncle Sam or the stare of South Carolina.

You already received most of your tax cut because the IRS changed the rules for calculating how much was withheld from your pay.

You got your $500 at a little less than $10 a week more in your pay. Had you invested that $10 in interest-bearing accounts or bonds, you would have made more than your neighbor.

The tax reforms replaced your personal exemption – a deduction of more than $4,000 – with larger standard deductions and increased child tax credits.

The law also lowered tax rates for individuals and closely held businesses.

The law ended some tax breaks including deductions for moving expenses, unreimbursed employee costs and state and local taxes.

About 65% of us will get tax cuts averaging $2,180, according to the Tax Policy Center. About 6% will owe an average $2,760.

Tax tips

• Submit your tax return early. If you’re due a larger refund than expected, you can claim it quickly.

• Take your time to file if you know you will owe Uncle Sam more money.

• Plan for next year now.

The IRS withholding calculator – https://apps.irs.gov/app/withholdingcalculator/ – or your tax preparer can help estimate your 2019 tax liability and the refund you may get in 2020.

The sooner you make a change, the less overall you will pay Uncle Sam this year in interest-free loans.