Average tax refund down 8.4 percent in first filing week

A different poster stated that money taken out of paychecks during the year was reduced due to the the "tax cuts." Is that accurate? If so, people really need to look at their overall annual tax payment and not just the refund to determine whether they benefited or lost out from the "cut"

 

Refund? Or are we talking about total income taxes paid?

 

I believe people in high tax states like NY and CA won't be able to deduct most of what they have in the past. And folks that used to deduct non-reimbursed travel lost that tax deduction.

 

You mean all of this money rolling into peoples pockets. . . . . . .

 

Yes, and we lost the ability to deduct more than 10k in property taxes and mortgage interest. We lost the ability to deduct sales taxes entirely. We have discussed this previously but many, many people are paying higher taxes based on the inability to take these deductions.

No doubt about that. My point went more to those who may have benefited from the tax change on an overall basis but it still doesn't feel like it because their refund is smaller.

 

Perhaps. But I know some people that purposely report fewer allowances so as to get a larger refund. Yes, its loses money since you could take the money in your paycheck (and invest if you can), but many people still do it (preferring to get a large check to use to buy something or take a vacation).
But in any event, what people perceive is reality to them... they may have not see the small increase in their paychecks and so now the sticker shock is hitting them.

 

The last thing I have a tendency to do is defend the new tax law in any way -- I think it was max theft and a selling out of our future -- but the problem (including a problem in my household's tax bill) is that employers scaled back their tax withholding too much. So a part of the disappointment is a calibration issue of the overall system. And yes, part of it is that the tax "break" (for those unlike me who will receive a tax break) is actually smaller than a lot of normal working people expected.

Seems to depend pretty sharply on the # of dependents in a household, or that's my perception. Moreso than before.

 

@B-Bob , I am SOOOO glad to hear you say this, because my wife blamed ME. Can I give her your contact info so you can set her straight? thanks in advance.

 

And the middle class gets screwed over again thanks GOP and 45 for all your lies.

 

Just give her one of your post links, that should do the trick.

 

Yes!

 

It makes sense to watch the refunds from an economic standpoint because that injection into the economy at one time of year can spur consumer spending to help companies, etc. But it is a poor barometer of the tax reform. I'd like to know, by quintile, how people's total tax burden changed.

Just filed my taxes, and compared to past years to see what changed for me. My effective tax rate did go down (huzzah!). The driver was the increase in the child tax credit. If not for that, my effective rate would have gone up 300 basis points.

 

Careful, Os! Word on the street is that @B-Bob is secretly a Romeo. Mrs. B-Bob is reportedly polishing the cutlery.

 

so anyone else's getting less refund this year?

 

I owed the country a couple of bucks. But fewer bucks that I owed it last year.