The Mystery of the Disappearing Refunds

[BobKamman]

From Politico:

If it seems like you’re not getting a tax refund like you used to, you’re not alone.

The share of taxpayers who get money back at tax time is slowly and, a little mysteriously, shrinking. At the same time, the number of people having to cut a check to the government has been rising.

The number of refunds so far this year is down by 3.3 percent, according to the latest IRS statistics that came out before Monday’s filing deadline. It was down last year too, and the year before that.

https://www.politico.com/news/2024/04/15/tax-fewer-people-getting-refunds-00152248 

[dkh]

Wasn't that the goal with eliminating exemptions, higher standard deduction, new W4 and withholding tables ? 

In my area (RV industry), lots of people supplement their income with 1099 side jobs.  Eats into that refund. 

[IRonMaN]

Maybe the folks that used their withholding as a savings plan will convert to putting money into tin cans, bury them in the backyard, and dig them back up every April 15th.  The interest rate is the same on both of those savings plans.

[BobKamman]

Yes, but doesn't that make the shovel deductible?

[IRonMaN]

Actually a post hole digger does a better job.  You get a cleaner hole and the hole is round like a can.  So I don't think you could deduct the cost of a shovel since it is the incorrect tool for the job.

[BobKamman]

@IRonMaN But, you still deduct your ProSeries software, right?

[IRonMaN]

I can’t deduct it since I get it for free.

[robertvito5764]

The head of the IRS was on Fox yesterday ... said this tax season went very smoothly and that the average refund was up $300