Why Tax Refunds Issued This Year Are Smaller

According to the Internal Revenue Service, the average tax refund is dropping about eight percent this year. The Tax Cuts and Jobs Act, passed in late 2017, cut tax rates for most Americans, but that doesn’t mean that refunds will be larger. Refunds so far this year have averaged $1,865, which is smaller than a year ago.Three million more Americans will owe this year instead of getting a refund. One reason is that less money is being withheld from paychecks. Personal exemptions have also been eliminated. Several other deductions are also no longer allowed including moving expenses, unless you're active military, tax preparation fees, employee expenses and dependent exemption. Families may qualify for the child tax credit, raised to $2,000 per child. Families that owe money have until April 15 to pay the IRS. If you can't make the payment by then you can file an extension or make payments.

 

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