Filing Statistics Show Sluggish Start, Smaller Refunds As Tax Season Begins


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The Internal Revenue Service (IRS) may need opened tax season on time this 12 months, however tax season is proving to be something however odd. Initial statistics present that, in contrast with the final submitting season, taxpayers aren’t dashing to file their returns.

Tax season opened on January 28, 2019. In the primary full week of tax season (ending February 1, 2019), the IRS obtained 16,035,000 particular person earnings tax returns. That compares with 18,302,000 particular person earnings tax returns obtained by the identical time final 12 months, a drop of greater than 12%.

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The IRS additionally reported a drop within the price that particular person earnings tax returns have been processed within the first week. While a decline was maybe not sudden contemplating the challenges introduced by the shutdown, the diploma of the downturn would possibly increase some eyebrows: 25% fewer returns have been processed through the first week of tax seasons as in contrast with the identical time final 12 months.

And what about these tax refunds? Typically, taxpayers with easy tax returns who rely on their tax refunds file early within the tax season. Congress touted their tax reform efforts as extra easy for taxpayers, promising extra money in taxpayers’ pockets. The first week of tax season isn’t fairly bearing that out: In the primary week, the IRS issued simply four,672,000 tax refunds as in comparison with 6,171,000 for a similar interval final 12 months. That’s a drop of greater than 24%. The complete quantity of tax refunds issued was simply $eight.713 billion, almost $four billion off of the identical time final 12 months. You can in all probability guess that the maths works out to smaller common refunds for taxpayers, too: $1,865 per taxpayer in comparison with $2,035 for a similar time interval final 12 months.

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So what are you able to extrapolate from this knowledge? To be truthful, not an amazing deal. It’s nonetheless very early within the season. But the numbers are probably disappointing for lawmakers who hoped that greater tax refund checks would bolster sagging approval scores.

Tax season is simply getting began: Tax Day is April 15, 2019 for many taxpayers. Check again with Forbes through the season for extra tax protection.



Source link Forbes.com

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