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The average tax refunds decreased 8.4% last week for the first week of the tax season compared to the same period last year, according to the Internal Revenue Service. The downward repayments ignite a growing army of taxpayers stunned by the consequences of the Trump administration's tax law – and by the effects of the partial closure of the government.
The average amount of a refund check was $ 1,865 dollars, against $ 2,035 on the same date. point in 2018, according to data from the IRS. Often, low-income taxpayers file early to pocket money as soon as possible. Many taxpayers rely on refunds to make large payments or spend money on jobs such as home repairs, vacations, or a car.
The IRS had estimated that it would emit about 2.3% fewer refunds this year as a result of the changes. in federal tax law, according to Bloomberg. MSNBC reports that 30 million Americans will owe money to the IRS this year, or $ 3 million more than before Trump's tax law.
"There will be a lot of unhappy people over the next month," said Edward Karl of the American Institute of Institute. The CPA told Politico. "Taxpayers want a big refund." According to Karl, about 71% of taxpayers received a refund worth about $ 3,000 last year.
Many taxpayers complain on Twitter that they have always received a refund – but that they must now at the IRS
The number of refunds sent by the IRS has also decreased (about 24%) as the agency struggled to keep pace with the government's closure. According to IRS data, the agency sent about 4.67 million tax refunds during the week ending Feb. 1, compared to about 6.17 million in the same period in 2018.
This year's production season began two days after closing. January 25 is complicated because it is the first after the enactment of the 2017 tax law. Although President Donald Trump has boasted that the new code would be so simplified that people can file their taxes. on a postcard, this is not the case.
In addition, the changes have complicated payroll deduction, so employers often have not withheld enough money, which means that people now have to pay more for the payroll. ; taxes. The new law also capped IRS deductions for national and local taxes paid, including property taxes, which created a bad surprise for many taxfilers. Several other deductions are no longer allowed.
Frustrations will likely continue to fuel support for plans to raise taxes on the ultra-rich. A poll last month found that nearly 60 percent of registered voters were in favor of a plan for the republic. Alexandria Ocasio-Cortez aiming to impose a marginal tax rate of 70% on the portion of annual income that exceeds $ 10 million per year.
Twitter is filling up. with complaints from people whose situation has changed dramatically.
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