Tax season is in full swing, and many Americans are discovering they won’t get a refund this year – which could end up affecting the U.S. economy.
Tax reform laws passed in 2017 have meant more tax breaks and less money withheld from week-to-week paychecks. But despite getting more money thoughout the year, not getting that big refund check in April could have a negative impact on consumer confidence.
Through the first five weeks of tax season, the IRS handed out about 2 million fewer refunds compared to the previous year, and has paid out about $5.2 billion less overall. But the size of the average refund has actually gone in 2019 by about $22.
Are you one of the people who isn’t getting a refund check this year? Do you like getting that big once-a-year refund check or would you rather have a bigger paycheck throughout the year?