The new tax law is in effect and some folks are seeing less money this tax season.
Sigh. While we saw this one coming, our bank accounts were just not ready. You might want to put that summer vacation to Fiji on hold because tax season is shaping up to be a real bust. According to CNN, early filers are seeing a lot less money than what they’re accustomed to.
“The average refund is down about 8% under the first full year of the overhauled tax code, according to data released by the IRS on Friday. Refunds averaged $1,865 compared to $2,035 for tax year 2017.”
We are a finally feeling the effects of Trump’s tax plan, which (no surprise) benefits corporations and the wealthy. The tax code gave some workers a little more on their bi-weekly paychecks, and if you have not yet adjusted your withholding allowances you probably had less taken out—a move that’s sure to hurt where it counts.
The new tax law also eliminates deductions such as alimony, mortgage interest, and certain school donations to name a few.