Federal Tax Overhaul Hits Home in Refunds

Feb. 19, 2019

The Internal Revenue Service said the average refund so far this year was down nearly 9 percent, to $1,949 from $2,135 a year ago. (SAUL LOEB/AFP/Getty Images)
The Internal Revenue Service said the average refund so far this year was down nearly 9 percent, to $1,949 from $2,135 a year ago. 

Some early tax filers are receiving an unpleasant surprise: Their federal tax refunds are smaller than they expected.

The Internal Revenue Service said the average refund so far this year was down nearly 9 percent, to $1,949 from $2,135 a year ago.

If your refund is smaller than before, that doesn’t necessarily mean you paid more in taxes. In fact, about 80 percent of taxpayers are expected to pay less in taxes this year than they did last year, according to the Treasury Department.

So why is your refund shrinking? Changes stemming from the federal tax overhaul that took effect last year – including adjustments to how much in taxes are withheld from paychecks that kicked in about a year ago – are likely the reason.
Read more…

Comments are closed.