As of 2017, the IRS changed withholdings on paychecks and altered some tax deductions, which is part of the reason why we have seen a decrease in refunds.
BOSTON (PRWEB) May 14, 2019
This year, many Americans had found that their tax refunds are less than expected, while others owed money when they previously received refunds due to the tax overhaul in December 2017.
“Many consumers who received tax refunds in the past noticed that they were much smaller this year,” said Steve Trumble, President and CEO of American Consumer Credit Counseling. “As of 2017, the IRS changed withholdings on paychecks and altered some tax deductions, which is part of the reason why we have seen a decrease in refunds.”
A new survey by national nonprofit American Consumer Credit Counseling found that 70 percent of respondents received a refund. Of those that received a refund, 75 percent say that their refund was less than the previous tax year. Respondents were split when asked if they would prefer to adjust their withholding to have a larger paycheck (50 percent) or larger small tax refund (50 percent). According to the IRS, as of the last week of March, the total refunds in 2019 were $206 billion, down $6 billion from refunds in 2018.
The survey also found that those who received a refund plan to use it to pay down debt (40 percent). Ten percent say they plan to use it to build their savings and less than five percent who plan to use it to go on a vacation.
The online poll surveyed 126 consumers on the organization’s website, http://www.consumercredit.com. The infographic illustrating the survey results can be found here: https://www.consumercredit.com/financial-education/infographics/infographic-tax-survey.
ACCC is a 501(c)3 organization that provides free credit counseling, bankruptcy counseling, and housing counseling to consumers nationwide in need of financial literacy education and money management. For more information, contact ACCC:
- For credit counseling and student loan counseling, call 800-769-3571
- For bankruptcy counseling, call 866-826-6924
- For housing counseling, call 866-826-7180
- Or visit us online at http://www.ConsumerCredit.com
About American Consumer Credit Counseling
American Consumer Credit Counseling (ACCC) is a nonprofit credit counseling 501(c)(3) organization dedicated to empowering consumers to achieve financial management through credit counseling, debt management, bankruptcy counseling, housing counseling, student loan counseling and financial education concerning debt solutions. To help consumers reach their goal of debt relief, ACCC provides a range of free consumer personal finance resources on a variety of topics including budgeting, credit and debt management, student loan assistance, youth and money, homeownership, identity theft, senior living, and retirement. Consumers can use ACCC’s worksheets, videos, calculators, and blog articles to make the best possible decisions regarding their financial future. ACCC holds an A+ rating with the Better Business Bureau and is a member of the National Foundation for Credit Counseling® (NFCC®). For more information or to access free financial education resources, log on to ConsumerCredit.com or visit http://www.consumercredit.com/financial-education.aspx