The truth about taxes – Latest IRS data shows refunds surging & Americans benefiting
Bottom Line: You probably recall the slew of initial stories from the start of the tax filing season indicating that refunds were down and the Trump tax cuts were to blame. As I pointed out then – the IRS indicated that filing trends weren’t comparable to previous cycles but for those that had filed outcomes were similar to past cycles. That fact was conventionally omitted by a dishonest news media bent on attempting to slander the Tax Cut and Jobs Act once again. There are two sides to stories and one side to facts. And once again as tax season progresses the facts have risen to the surface – even if news media will ignore them now. Based on the most recent report from the IRS for filers during the first full month of tax filing season here’s the scorecard:
- Average refund: $3,143 (record high)
Coming into tax season I estimated that the average refund would surge past the $3,000 mark setting records in part due to the benefit of a lower tax burden due to the new tax law but also because around 40 million Americans didn’t make proper adjustments with their withholding to retain more of their money during the year. After a month of tax filing its holding true. What’s more is that when you compare those who’ve already filed with the latest Treasury information here’s the scorecard on how people who filed fared in 2018 compared to 2017 due to the new tax law:
- Negligible change: 15%
- Paid higher taxes: 5%
- Paid lower taxes: 80%
That’s right,only 5% of Americans who’ve filed paid higher taxes as a result of the new tax law with almost everyone else benefiting. Just as I’d also indicated would be the case going all oft he way back to December of 2017.
Don’t expect to hear it in the news media. Just expect to see it in your wallet.