Average Tax Refunds Down 8.4 Percent As Angry Taxpayers Vent On Twitter

Average Tax Refunds Down 8.4 Percent As Angry Taxpayers Vent On Twitter

Average tax refunds were down last week 8.4 percent for the first week of the tax season over the same time last year, according to the Internal Revenue Service. Dipping refunds are inflaming a growing army of taxpayers stunned by the consequences of the Trump administration’s tax law — and the effects of the partial government shutdown.

The average refund check paid out so far has been $1,865, down from $2,035 at the same point in 2018, according to IRS data. Low-income taxpayers often file early to pocket the money as soon as possible. Many taxpayers count on the refunds to make important payments, or spend the money on things like home repairs, a vacation or a car.

The IRS had estimated it would issue about 2.3 percent fewer refunds this year as a result of the changes in the federal tax law, according to Bloomberg. MSNBC reports that 30 million Americans will owe the IRS money this year — 3 million more than before Trump’s tax law.

“There are going to be a lot of unhappy people over the next month,” Edward Karl of the American Institute of CPAs told Politico. “Taxpayers want a large refund.” Some 71 percent of taxpayers received refunds last year worth about $3,000 on average, according to Karl.

Scads of taxpayers are complaining on Twitter that they have always received a refund — but now owe the IRS instead.

The number of refunds sent out by the IRS was also down — about 24 percent — as the agency struggled to get up to speed after the government shutdown. The agency sent out about 4.67 million tax refunds in the week ending Feb. 1, compared with about 6.17 million in the same period in 2018, according to IRS data.

This year’s filing season, which began two days after the shutdown ended on Jan. 25, is complicated because it’s the first after the 2017 tax law was enacted. Though President Donald Trump boasted that the new code would be so simplified that people could file their taxes on a postcard, that’s not the case.

In addition, the changes complicated payroll withholding, so that not enough money was withheld by employers in many cases, meaning that people now owe more taxes. The new law also capped IRS deductions for paid state and local taxes, including real estate taxes, resulting in a nasty surprise for many filers. Several other deductions are no longer allowed.

The frustrations will likely continue to fuel support for plans to boost taxes on the ultra-wealthy. A poll last month found that nearly 60 percent of registered voters support a plan by Rep. Alexandria Ocasio-Cortez to impose a 70 percent marginal tax rate on the portion of annual income that exceeds $10 million a year.

Twitter is filling up with complaints from people whose situation has changed radically.

Russell Matthews 🌊@NightBurn0381

.@realDonaldTrump @GOP I am a middle class nurse. Why is my 59% (literally 1000s of dollars) LOWER this year than anytime in the past seven years? Nothing in my situation has changed. I thought your “wonderful” plan was supposed to help the middle class?

1,800 people are talking about this

LoFi Builds@LoFiBuilds

Boy oh boy. My wife and I usually get a good return. This year we owed an EXTRA 2400$ to the Federal Government, which obviously caused us to owe a nice bit of money.

108 people are talking about this

One People@OnePeople98

It;s extremely bad, I’m hearing horror stories of people owing 4 an 5 thousand when they were expecting a refund.

AGirlHasNoPresident@kamtheleo

We were expecting a refund like last year because we made a little less than last year. We owe $5,000. Same W4 exemptions. Horrible.

76 people are talking about this

AGirlHasNoPresident@kamtheleo

So, about that little $20 extra per paycheck that folks got after the …We actually OWED that and THEN some in federal taxes and should have been saving it to pay taxes this year. Do you get it?! We owe MORE in federal taxes after the law than before!

177 people are talking about this

Woman In The Moon@SassyKadiK

My daughter called in panic. They have always received a hefty tax return, both claiming zero. They bought their first home last year, she thought her return would be larger than normal.
They owe $1000.
Guess Trump’s tax breaks weren’t really for the middle class.

9,503 people are talking about this

#TaxScamStories@ScamTrump

don’t forget to deduct your private jet! 🙄

MickeyGriff6619@Michgriff6619
Replying to @BillOReilly

Tell that to all the regular working Americans who have never owed the IRS before and who now owe thousands. #TaxScam

33 people are talking about this

Nancy Pelosi

@TeamPelosi

The at work. https://www.bloomberg.com/news/articles/2019-02-06/banks-reaping-21-billion-tax-windfall-cut-staff-ease-off-loans 

U.S. Banks Win $21 Billion Trump Tax Windfall Then Cut Staff, Loaned Less

Major U.S. banks shaved about $21 billion from their tax bills last year — almost double the IRS’s annual budget — as the industry benefited more than many others from the Republican tax overhaul.

bloomberg.com

🌈Comrade Nettle@nethornk

Everyone’s getting back less on their taxes or paying when they never have before (not like Trump never pays, but where were previously owed a refund). Please tell @GOP for me: enjoy the $ i was planning to use for 2 new tires & some dental work. Bastards.

49 people are talking about this

Kerri Connor@KerriConnor

Did my taxes. Usually get back $3000-$4000. Owe $250. In 33 years of paying taxes, I have NEVER owed.

242 people are talking about this
  • This article originally appeared on HuffPost.

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