IRS data shows refunds down 2% under new law
IRS data released Thursday shows that while the average refund fell, the tax filing season was largely unchanged by the massive tax overhaul.
The Tax Cut and Jobs Act lowered the tax rate for most Americans. This year was the first time taxpayers filed under its changes. It overhauled many of the rules surrounding the process — such as roughly doubling the standard deduction and limiting many popular itemized deductions.
That led to surprises for some taxpayers when it came time to file. The season also got off to a rocky start as it opened amid a partial federal government shutdown.
IRS data show that as of April 19, the number of returns received and processed was on par with last year, increasing 0.2%. The average refund fell 2% to $2,725.