Under the new Trump tax code, the average refund is 8.4% lower
The first tax season with President Donald Trump’s new tax plan is underway and it’s off to a disappointing start for first-time filers. The average refund this year is down 8.4%, to $1,865, for the week ending Feb. 1, according to data from the Internal Revenue Service.
Americans also don’t seem eager to make a leap forward on their taxes. The total number of returns received for the official first week of tax season was 16.04 million. That’s down 12.4% from the first week of last year’s tax season.
In a Friday press release, Treasury Secretary Steven Mnuchin said “filing season has successfully kicked off with millions of tax returns filed.”
Early filers, who expected bigger refunds after the White House promised a $4,000 ‘raise’ under Trump’s tax plan, expressed their frustration on Twitter, using the hashtag #GOPTaxScam .
“Last year I was able to get $2700 in tax returns but all my deductions disappeared this year and I was at -$350 net. The only saving grace was the increased tax credit for children, which kept my refund in the positive,” wrote @dexternights.
Others also shared their stories of having smaller refunds and in some cases owing money after years of getting a refund.
The $1.5 trillion tax code overhaul was signed into law in late 2017. Under Trump’s plan, rates were cut for individuals and businesses.
However, the plan, which Trump said would simplify the tax code, also removed many deductions that working-class Americans relied on to lower their tax bill, such as interest on home loans, moving expenses and certain labor costs, including licensing and regulatory fees. .