Early tax filers are seeing smaller average refunds this tax season, with the average refund down about eight percent from last year. The slow start marks the first full year of the Republican-led overhauled tax code. According to data released by the IRS on Friday, refunds averaged about $1,865 compared to $2,035 for tax year 2017. This tax season is being watched closely to gauge the impact of the tax overhaul in 2017 that brought in the most sweeping changes to the tax code in 30 years. The legislation lowered most individual rates and nearly doubled the standard deduction, but also included sweeping tax cuts for companies, lowering the corporate rate to 21 percent from the previous 35. Experts have said people could see their tax burden increase because the revised code eliminated some popular deductions.
SOURCE: The Daily Beast