If you were banking on your tax refund to give you a bit of financial breathing room, you may have been much less pleased with your payout than in years past, no thanks to Donnie Trump’s new tax law.
Through the first couple weeks of filing, IRS data indicates that the law passed by the Republicans last year reduced the average tax refund by $170. The average federal tax refund amount was reduced by 8.7% to $1,949 compared with last year. The total number of refunds issued dropped by 16%, Business Insider reports.
The surprise comes in large part due to employers and employees failing to adjust withholdings from paychecks to account for the Tax Cuts and Jobs Act changes. The government released updated withholding guidelines to help employers decipher how much to set aside from an employee’s paycheck to cover taxes. This is merely an estimate, so for employers who withheld too much, their employees will get a refund, and employers who didn’t withhold enough, their employees will owe the IRS.
That clarification doesn’t soften the blow for people who believed they were scammed by the so-called
If you haven’t banged out your taxes yet, don’t give yourself any added stress. Follow this link and make it easy on yourself.