The latest round of refund checks have been issued and refunds have been found to be smaller compared to 2018.
The IRS began accepting returns on January 28 and they’ve managed to process 26.9 million individual income tax returns. As of February 8, the average refund issued was $1,949 down 8.7 percent from $2,135 in 2018 per IRS data.
The reason could be due to the Trump Tax Cuts and Jobs Act, which went into effect last year. If you withheld less in income taxes last year, you took home more pay. The result created a smaller refund, which many people are seeing this spring.
“Most people are seeing the benefits of the tax cut in larger paychecks throughout the year, instead of tax refunds that are the result of people overpaying the government,” a Treasury spokesperson said.
PHOTO CREDIT: CNBC