Americans are having mixed reactions after getting a lower tax refund this year. According to data from the IRS, the average tax refund for this year is USD 2,640 compared to USD 3,169 last year. This is a 17 percent drop that has concerned many people.
This has caused the government to defend this move, citing that there are many other ways citizens are benefiting from the new tax legislation. For this reason, people are not overpaying as much to the government. The government claims that they have been processing fewer refunds.
Currently, the tax legislation is causing citizens to receive larger paychecks every month. The officials said that the smaller refunds mean that people are following the new rules now that there are not as many deductions. If they are withholding an appropriate amount of money, then they have less to be refunded.
The government is pleased with this move and wishes to clarify the situation to every person to avoid any misunderstanding. The government is aiming to have little to refund to the citizens when tax season comes. They want the average taxpayers to have a higher paycheck so that they can meet their monthly bills without strain.
Trump’s New Legislation
According to reports from the IRS, the elimination of some deductions by Trump’s new tax legislation is also the main reason that there are fewer tax refunds. Some of these deductions were the cause of larger refund claims. Furthermore, they have introduced a tax calculator that helps the taxpayers to confirm the amount they are supposed to withhold.
Every taxpayer has an obligation to withhold what is due to the government while trying not to overpay. Officials have confirmed that the government is satisfied with the improvement. To them, fewer and reduced refunds mean that all is going well. The citizens keep more money to pay their monthly bills, credit cards and any loans they have without a strain when they withhold only what is due to the government. This way, their finances will be better off. They can even have the opportunity to visit credit score websites like www.boostcredit101.com and apply the tips for improving a credit score.
Tax Cut for the Wealthy
Trump’s new tax cut legislation has also affected the wealthy companies, which are now paying fewer taxes. This move has not been received well by many people. They feel that this newly implemented move should only have affected average taxpayers.
The biggest 500 companies, according to critics, have scooped up larger profits because of paying lower taxes. This may have a ripple effect on the country, which relies on taxes for many projects that directly aid the people.
The smaller tax refunds in 2019 have been received well by some people. Others feel that the implementation of the new tax laws should have only benefited taxpayers who make less than a certain amount rather than everyone. For now, the government will continue to issue lower tax refunds.