2019 Tax Returns: Even Lower Average Tax Refund During the Third Week of the Production Season

Three weeks after the beginning of the tax period, the tax refunds of Americans decrease. The average repayment issued until February 15 was 16% lower than last year, according to data released by the Internal Revenue Service. The average reimbursement so far this year is $ 2,640, compared to $ 3,169 in 2018.

The number of taxpayers who received a refund is also down significantly from the previous year – down more than 26%, although the number of tax returns processed decreased by only 6.6%.

For now, experts warn against an excessive reading of the IRS figures, which can rock significantly from one week to the next. About 28 million tax refunds are delayed until at least February 27, due to the laws relating to earned income tax credit, claimed by low-income taxpayers, and to the credit Children's tax, as the 2017 tax reform has significantly expanded.

"[T]The slow start of the tax refund season may not be indicative of what will happen in the coming weeks. The data from last year show that the biggest rise took place at the end of February, "Morgan Stanley analysts wrote.

Smaller refunds also do not mean that someone has paid more taxes. According to the Tax Policy Center, most Americans have benefited from a tax break during the 2017 tax reform.

"We are seeing customers getting lower refunds, but when people compare the tax that they actually paid, the amount of their refund is sometimes less than thousands of dollars," said Caleb Paddock, Certified Financial Planner in Colorado.

Still, repayment represents a significant cash injection for many US households. For most of them, it is the largest lump sum payment that they receive all year. For this reason, some economists are worried about the effect that lower refunds could have on consumer spending.