If you haven’t submitted your taxes yet, you may be in for a smaller refund.
The government’s early filing data shows the irs has paid $6 billion less in refunds this tax season.
That’s a three percent drop over last year.
The data shows the average refund paid out through the end of march was about $2,800, which is roughly $20 less than 2018
The new tax law adjusted irs withholding tables in early 2018.
That resulted in the government taking a little less out of some people’s paychecks during most of last year.
The Brookings Institute estimates 80% of Americans paid an average of $2,100 less in taxes in 2018.
The reduction was applied to paychecks throughout the year versus a large single lump-sum refund check.
That means taxpayers may feel a bigger pinch this refund season, bur experts sat it’s the same dollar amount you would have gotten back.
However, this time, you just got it in smaller pieces.
Getting to keep more of your income throughout the year is a good thing.
But financial experts expect plenty of disappointment as people often look at refunds as a sort of forced savings plan.
Using the extra money to pay for mortgages, bills, or maybe a family getaway