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Tax refunds are shaping up to be smaller this year. Here's why.


Added 02-10-19 05:17:02pm EST - “Many people going to be upset, experts say” - Theblaze.com

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Posted By TheNewsCommenter: From Theblaze.com: “Tax refunds are shaping up to be smaller this year. Here's why.”. Below is an excerpt from the article.

Government income tax cuts, as promised, increased take-home pay for many people this year. But the downside is that tax returns are shaping up to be smaller.

On average, returns are about 8.4 percent smaller this year. Specifically, the average tax refund this year is $1,865, or $170 smaller than last year's average of $2,035, according to IRS figures. The IRS data compared the cumulative statistics of Feb. 2, 2018 and Feb. 1, 2019, according to published reports.

"While some people likely noticed an uptick in their take-home pay, the amount might have been small enough that people didn't notice, especially those who get direct deposit and might not look at their pay stubs," NBC News explained. The increase may have gone completely unnoticed for workers who had an increase in health insurance or another payroll deduction.

One reason it's happening is due to adjusted tax withholding tables under the Tax Cuts and Jobs Act passed in 2017. This marks the first year the changes went into effect.

"There are going to be a lot of unhappy people over the next month," Edward Karl, vice president of taxation for the American Institute of CPAs told Politico. "Taxpayers want a large refund."

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