"Average tax refunds were
down last week 8.4 percent for the first week of the tax season over the same time last year, according to the
Internal Revenue Service. Dipping refunds are inflaming a growing army of taxpayers stunned by the
consequences of the Trump administration’s tax law — and the effects of the partial
government shutdown.
The average refund check paid out so far has been $1,865, down from $2,035 at the same point in 2018, according to IRS data. Low-income taxpayers often file early to pocket the money as soon as possible. Many taxpayers count on the refunds to make important payments, or spend the money on things like home repairs, a vacation or a car.
The IRS had estimated it would issue about
2.3 percent fewer refunds this year as a result of the changes in the federal tax law, according to Bloomberg. MSNBC reports that 30 million Americans will owe the IRS money this year —
3 million more than before Trump’s tax law.
“There are going to be a
lot of unhappy people over the next month,” Edward Karl of the American Institute of CPAs told
Politico. “Taxpayers want a large refund.” Some 71 percent of taxpayers received refunds last year worth about $3,000 on average, according to Karl.
Scads of taxpayers are complaining on Twitter that they have always received a refund — but now owe the IRS instead.
The number of refunds sent out by the IRS was also down — about 24 percent — as the agency struggled to get up to speed after the government shutdown. The agency sent out about 4.67 million tax refunds in the week ending Feb. 1, compared with about 6.17 million in the same period in 2018, according to
IRS data.
This year’s filing season, which began two days after the shutdown ended on Jan. 25, is complicated because it’s the first after the 2017 tax law was enacted. Though President
Donald Trump boasted that the new code would be so simplified that people
could file their taxes on a postcard, that’s not the case.
In addition, the changes complicated payroll withholding, so that not
enough money was withheld by employers in many cases, meaning that people now owe more taxes. The new law also capped IRS deductions for paid state and local taxes, including real estate taxes, resulting in a nasty surprise for many filers.
Several other deductions are no longer allowed.
The frustrations will likely continue to fuel support for plans to boost taxes on the ultra-wealthy. A poll last month found that nearly
60 percent of registered voters support a plan by Rep. Alexandria Ocasio-Cortez to impose a 70 percent marginal tax rate on the portion of annual income that exceeds $10 million a year.
www.huffingtonpost.com/entry/tax-refunds-down-84-percent-twitter-complaints_us_5c5e4576e4b0eec79b2379e4
Maybe I am stupid but the object for me has always been to never get a refund or get as small a one as possible. That means I overpaid the Fed who had use of MY money all year.I would rather pay than let them have my money free.
Are people really this dumb? The ones who use their refund for vacations etc should realize they just could have saved an amount every paycheck and made interest on it.
I do understand the new payroll withholding and now having to pay when you didn't before is a legit complaint. The law capping state and local taxes at 10,000. is not likely to have affected most taxpayers complaining their refund is less.
People, do not let the gov't use your money for a year and then complain. Keep the money yourself and pay in April.
Click to expand...