U.S. tax refunds down nearly 9 percent vs year ago: IRS
data
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[February 16, 2019]
WASHINGTON (Reuters) - The average U.S. tax
refund under President Donald Trump's tax overhaul is down nearly 9
percent so far in this year's tax filing season, according to Internal
Revenue Service data released on Thursday.
Data covering the first 12 days of the new tax season showed an average
refund of $1,949 for the 2018 tax year, when Trump's tax cuts for
businesses and individuals took effect. That is 8.7 percent lower than
the $2,135 average from a year earlier.
Last week, IRS data showed average refunds running 8.4 percent lower.
Trump's tax cuts have been widely criticized by Democrats and
independent analysts who say the changes favor corporations and the
wealthy over middle-class and lower-income Americans.
But the U.S. Treasury, which oversees the IRS, said refunds were lower
because most taxpayers were receiving their windfall from the Tax Cuts
and Jobs Act in the form of larger paychecks.
"The TCJA cut taxes across the board, particularly for middle-income
families," the Treasury said in a statement.
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The new Form 1040 tax form for individuals, released by U.S.
Treasury Department, is shown in this handout image obtained June
29, 2018. Department of the Treasury/Handout via REUTERS
"Smaller refunds mean that people are withholding appropriately based on their
tax liability, which is positive news for taxpayers," the statement said.
The total dollar amount of tax refunds was also down more than 23 percent at
$22.2 billion, while the total number of refunds was 15.8 percent lower at
nearly 11.4 million, according to IRS data.
This year's tax filing season opened on Jan. 28, three days after a 35-day
partial government shutdown, the longest in U.S. history. On Tuesday, the
National Taxpayer Advocate, an internal IRS watchdog, said the shutdown caused
"real harm" to taxpayers, denying many the ability to get official help to
understand their tax obligations.
The latest IRS data showed the total number of tax returns processed by the IRS
to be 10.2 percent lower than a year ago at just under 30 million, while the
total number of returns received was down 6.9 percent.
The final deadline for filing 2018 tax returns is April 15.
(Reporting by David Morgan; Editing by Dan Grebler)
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