Tax Day - The truth about 2019 tax refunds
Bottom Line: There’s no doubt that the biggest tax reform since Reagan’s reforms has led to a bunch of confusion about what we’re paying. There’s also no shortage misinformation thrown around by politicians with an agenda and news media willing to aid them. Once again there are two sides to stories and one side to facts. H&R Block’s scorecard from 2019’s tax filings tells the story...
- Average tax refund is up by 1.4%
- Average federal tax burden is down by 24.9%
That’s remarkable. The average person filing taxes is paying nearly 25% less in total federal income tax. Here’s a statement from H&R Block on their findings...
“Tax reform represented the largest change to the tax code in 30 years, and on top of that, the IRS changed withholding tables in February 2018, automatically adjusting take-home pay. All these moving pieces have made it hard for people to understand the TCJA impact on their individual situation. Relying on their refund size to determine what tax reform means to them may not only be misleading, but can also put them further at risk of not getting the tax outcome they want when they file next year.
According to H&R Block, 80% of Americans didn’t make adjustments to withholding and received the benefit in their paychecks. The per paycheck increase averaged $50 per tax filer. So, let’s recap...
Higher paychecks, higher tax refunds and a much lower tax burden. That’s what happened for the average person as a result of the tax cuts.