Tag: Tax refund

The average refund in the second week of the filing season was $1,949, down 8.7 percent from $2,135 a year earlier, according to IRS data released Thursday. The decline may be largely due to how some employees and employers had adjusted the amounts withheld from paychecks to account for changes under the new tax law. Most taxpayers received a tax cut under the law but some may have had too little withheld, resulting in a smaller-than-expected refund, or even money owed to the government. For some lower-income households, it is the biggest cash infusion of the year. SEE ALSO: Free tax prep? Government officials say that doesn't reflect rising or falling tax liability. Social media posts have flared as early filers adjust. "That big refund they've gotten used to - that's a goner now that (President) Trump's tax changes are the law of the land, and many might owe the government money," Wyden said in the Senate last week. President Donald Trump vowed that families would receive an average $4,000 tax cut. Most taxpayers did receive a tax cut.

The average refund in the second week of the filing season ended Feb. 8 was $1,949, down 8.7 percent from $2,135 a year earlier, according to IRS data released Thursday. The decline may be largely due to how some employees and employers had adjusted the amounts withheld from paychecks to account for changes under the new tax law. Most taxpayers received a tax cut under the law but some may have had too little withheld, resulting in a smaller-than-expected refund, or even money owed to the government. For some lower-income households, it is the biggest cash infusion of the year. The Treasury Department believes around 80 percent of taxpayers will see a decrease in their tax bill this year, while about 15 percent will owe roughly the same amount. Public discontent is providing Democrats with fodder for criticism of a tax overhaul they say is beneficial mostly for big corporations and the rich. “Never mind that the current refund numbers are based on only a few days of data or that refund statistics can vary widely from one week to the next,” Grassley said Wednesday on the Senate floor. The Finance Committee’s top Democrat, Sen. Ron Wyden of Oregon, suggested the Trump administration may have schemed to inflate paychecks with the new withholding tables for the tax law, exposing taxpayers to negative surprises as a result. “It sure looks like the Trump administration decided to put politics first, lowball the estimates of how much tax should be withheld from everybody’s paychecks, and lure people into the false sense of security that they’d gotten a big tax cut, courtesy of Donald Trump.” President Donald Trump vowed that families would receive an average $4,000 tax cut. Most taxpayers did receive a tax cut.