Average Tax Refund Dropped 8.4 Percent Under New GOP Tax Plan
According to statistics released by the IRS, the average tax refund enjoyed by those who filed in the 2019 season’s first week fell 8.4 percent when compared to the same timeframe last year. It’s a drop from $2,035 to $1,865.
Notably, this is the first year that will completely utilize the 2017 tax overhaul Republicans introduced, and it follows a historic partial government shutdown that affected the IRS. So far, the amount of individual tax returns the IRS received dropped by 12.4 percent, and the amount of returns the IRS processed dropped by 25.8 percent. 2019’s information represents the week from Jan. 28 to Feb. 1, whereas last year’s equivalent period spanned Jan. 29 to Feb. 2, 2018.
Income tax filing will last until April 15 for most American citizens. Although refund predictions have fluctuated widely among financial analysts, a feeling of dread can be felt. Edward Karl, vice president of taxation for the American Institute of CPAs, said, “There are going to be a lot of unhappy people over the next month. Taxpayers want a large refund.”
In 2018, about 71 percent of taxpayers obtained an average refund of $3,000. Democrats maintain this year will be less prosperous for taxpayers, claiming more citizens will owe the IRS money.
The IRS, meanwhile, has issued a statement, noting how the 2019 tax period is still early. “IRS systems are operating smoothly to start the filing season, and refunds are being issued,” the statement said. “The IRS encourages taxpayers to e-file as the quickest way to receive their refunds.”