Millions of Americans could face a shocking tax season.
According to the Internal Revenue Service, a drop in federal reimbursement stems from President Donald Trump’s new tax bill. New figures from the IRS reveal the average tax refund dropped 8.4 percent from $2,035 in 2018 to $1,865 in 2019.
According to the IRS, 30 million Americans will be writing checks, rather than cashing them, which is 3 million more than if Trump’s tax law had not passed.
U.S. & World
Many people who had expected refunds and are having to pay instead have taken to social media to share their frustration, NBC News reported. Three groups that were particularly affected were tax filers who itemized, those with dependents, people with jobs on the side and retirees, according to CNBC.
"The people who are most likely to be surprised this year are the ones who lost some deductions they had last year and who didn't make changes to their withholding," Nathan Rigney, lead tax research analyst at the Tax Institute at H&R Block, told CNBC.
There is still time to make last-minute deductions. Contributions to an individual retirement account or a health savings account could help reduce your taxable income for this filing season if you qualify.