The first tax season with President Donald Trump's new tax plan is under way and it’s off to a disappointing start for early filers. The average refund this year is down 8.4 percent, to $1,865, for the week ending Feb. 1, according to data from the Internal Revenue Service.
Americans also don’t seem to be eager to get a jump start on their taxes. The total number of returns received for the first official week of tax season was 16.04 million. That’s down 12.4 percent from the first week of last year’s tax season.
In a news release on Friday, Secretary of the Treasury Steven Mnuchin said “filing season has successfully launched with millions of tax returns having been filed.”
Early filers, who were expecting bigger refunds after the White House promised a $4,000 “raise” under the Trump tax plan, vented their frustrations on Twitter, using the hashtag #GOPTaxScam.
“Last year I was able to get $2700 in tax returns but all my deductions are gone this year and was a net -$350. Only saving grace was increased child tax credit which kept my refund in the positive,” wrote @dexternights.
Others also shared their stories about having smaller refunds and in some cases, owing money after years of getting a refund.
The $1.5 trillion tax code overhaul was signed into law at the end of 2017. Under Trump’s plan, rates were cut for individuals and corporations.
However, the plan, which Trump said would simplify the tax code, also got rid of many deductions working class Americans relied on to lower their tax bill, such as home equity loan interest, moving expenses and certain job costs, including licensing and regulatory fees.