Many Americans report seeing smaller tax refunds

Many Americans report seeing smaller tax refunds

MEMPHIS, TN (WMC) - President Trump has touted his new tax bill as reducing taxes for most Americans.

But now, many taxpayers are finding themselves confused when they don't get the refund they expected.

Some early returns show some people even owe money to the IRS.

The discrepancy lies in the new tax law which doubled the standard deduction for most middle-class Americans.

It gives workers more money upfront in their paychecks, but they get a smaller refund.

“If you're surprised by your bill this year, the most important thing that you can do is update your withholding,” said Arielle O’Shea from NerdWallet. “So that money is actually coming out of your paycheck in the right amount every month and you're not paying a big chunk of money at tax time.”

So far this year, the average refund is about $1,800, down eight percent from last year.

In all, 30 million Americans are expected to owe the IRS this year.

Copyright 2019 WMC. All rights reserved.