Under new U.S. tax code, average family’s refund is down by 8.4%

February 14, 2019

The first tax season under President Donald Trump’s Tax Cuts and Jobs Act is under way—and early filers are saying “Where’s my refund?” according to an NBC News report.

While the White House promised in October 2017, while it was pushing for passage of the law, that the average family “would get a $4,000 raise,” now some taxpayers are discovering that the tax man giveth—but also taketh away. And that’s especially true as it pertains to their annual refund, the network news outlet says.

The average refund this year is down by 8.4%, to $1,865, for the week ending February 1, according to data from the Internal Revenue Service. At that time, the IRS said, the agency already had processed about 16  million returns—down from the 18 million it had received and processed at the same time last year.  That’s down 12.4% from the first week of last year’s tax season.

In a news release on February 8, Secretary of the Treasury Steven Mnuchin said “filing season has successfully launched with millions of tax returns having been filed.”

Early filers vented their frustrations on Twitter, using the hashtag #GOPTaxScam.

“Last year I was able to get $2700 on tax returns but all my deductions are gone this year and was a net-$350. Only saving grace was increased child tax credit which kept my refund in the positive,” wrote @dexternights.

Indeed, the plan, which Trump said would simplify the tax code, also got rid of many deductions that working class Americans relied on to lower their tax bills—among them, home equity loan interest, moving expenses;and certain job costs, including licensing and regulatory fees.

Research contact: @AlyssaNewcomb 

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