2019 Tax Refunds Are 16%
Lower Than Previous Year Although tax season has just begun,
early filers are already noticing a
significant decrease in refund amounts. According to the IRS, the average
refund amount of 2019 is $2,640,
while the average for 2018 was $3,169. While a 16.7% decrease may seem
like a bad thing, it is actually a positive. The 2018 Tax Cuts and Jobs Act made
changes to individual income tax. These changes eliminated the need for itemized deductions by reducing income tax rates and expanding standard deduction. Rather than receive large tax refunds
at the end of the year, people are receiving
more money in their paychecks. U.S. Representative
Kevin Brady, via CNBC Large refunds are indicative of
overpaying taxes throughout the year. As an employee, filling out a W-4 Form
allows you to mark down “personal allowances”
and adjust the income tax being withheld. U.S. Representative
Kevin Brady, via CNBC