Oops! Don’t rush out and start spending that tax refund.

Many millions of Americans filling out their 2018 taxes will probably get a rude surprised to learn that their refunds will be much less than expected or that they will actually owe money to the Internal Revenue Service after years of receiving refunds.

People have already taken to social media, using the hashtag #GOPTaxScam, to vent their anger. Many blame Trump and the Republicans for shrinking refunds. Some on Twitter are saying they wouldn’t vote for Trump again after seeing their refunds slashed.

The uproar follows the passage of Trump’s so-called major overhaul to the tax code in December 2017, which was enacted with only Republican votes and is considered the biggest legislative achievement of Trump’s first year. Remember when con-man Trump said “Let’s call it the tax cut, cut, cut bill” and bragged to his rich friends at Mara Lago that he had made them all a lot richer?

While many Americans did receive a marginal tax reduction in 2018, tax refunds are a completely different matter. Many Tax refunds have decreased because of changes in the law, such as a new limit on property and local income tax deductions, and some have decreased because of how the IRS has altered withholding in paychecks in a thinly disguised effort to make the Trump tax cut look bigger.

The average tax refund check is down an estimated $170 this year compared to last, the IRS reported Friday, and the number of people receiving a refund so far has dropped by 25%. This represents a big difference that will hit many middle-income families hard.

One word of caution this is that this is early data and reflects only returns processed through Feb. 1, and the partial government shutdown caused delays in processing filings.

Early data can shift a lot, some tax experts say, but there’s a reason to believe frustrations could rise as more Americans complete their tax returns.

There is an IRS estimate that about 4.6 million fewer filers would receive refunds this tax filing season. Another 4.6 million filers were likely to owe money who had not had that experience in the past.

There is no estimate for how many people could still receive a refund but a smaller one than before.

Edited from Bloomberg News

 

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5 thoughts on “Oops! Don’t rush out and start spending that tax refund.

  1. Been gone on a nice trip to Costa Rica for the last two weeks, only to come back to more fear mongering from Socialists (insert face palm here…)

    Had my accountant do my taxes before I left. Got exactly $176 less this year than last year on my return.

    BUT, I paid LESS in taxes each paycheck. Averaged $48.00 more takehome in my paycheck every two weeks for a total of $1248 more in my pocket DURING the year.

    (Subtract the $176 I got less on my return than last year for a total of $1072 LESS PAID in federal taxes throughout the year.)

    Thanks Republicans! You lowered my tax obligation and I thank you for it!

    Stay negative, my friends….

    Like

    • Donald “Negative Numbskull” Trump is your lover. ❤️💋

      Liked by 1 person

      • Lol! He’s living in your head, not mine! I said thanks to the Republicans that passed the Tax reform bill and this is what you come up with? Stay paranoid and angry, my friend….

        Like

  2. That tax cut you are so happy about receiving, that raised the national debt by one trillion dollars in just one year. the highest increase ever in that short a period, ever. Way to score deplorable.

    Liked by 1 person

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