Why are fewer people getting refunds?

[Tbar]

A tax mystery: Why are fewer people getting refunds?

The number of people who owe the government has also been rising.

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.

While no one is exactly sure why, some point to changes in the way people work. Others suspect it has to do with the way the government calculates how much in tax should be withheld from people’s paychecks. And the reversal of fortune could have consequences for how and whether people comply with tax laws.

“We want to make sure that people are, in fact, filing,” said Bob Kerr, a former longtime IRS official, now a Washington-based tax practitioner. “And there are a whole bunch of people who do it because it pays to do it.”

“I think this is really going to be a problem.”

Before the pandemic, about three-quarters of filers typically got refunds. Now about 65 percent do. The IRS distributed fewer refunds last year — 105 million — than it did in 2010, despite collecting 20 million more returns..........

https://www.politico.com/news/2024/...-00152248?utm_source=pocket-newtab-en-us

[HoustonHunter94]

The amount of resentment I have towards the Federal Gov and the IRS in particular knows no bounds. Criminal organizations that take our money, launder it and squander it to no end and threaten us with jail and complete financial ruin if we don't pay them (actually they TAKE most of it). They make the tax code as complicated as possible and I have no doubt that we are paying more than ever and they will find a way to keep shafting us.

[GroceryGetter]

The amount of resentment I have towards the Federal Gov and the IRS in particular knows no bounds. Criminal organizations that take our money, launder it and squander it to no end and threaten us with jail and complete financial ruin if we don't pay them (actually they TAKE most of it). They make the tax code as complicated as possible and I have no doubt that we are paying more than ever and they will find a way to keep shafting us.

What? You don't spend your weekends perusing through the two volumes of U.S. Tax Codes? Volume one is 1,400 pages and volume two is over 1,200 pages.
That is all you need to know. Yet California can't account for $24 billion set aside for homeless people.

Weird.

[Twist]

I can’t answer as to why their are fewer, but I have a pretty good idea.

For example, the wife and I made roughly the same money in 2023 as we did in 2022, yet paid a little under 12k more in taxes while also owing almost 2k more this tax season than what we did in 2022.

I’m trying to think what might have changed over the past few years…..

[SmTx]

Those 80k irs agents, probably

[Shane]

Whether you get a refund or not depends on how much tax you withheld during the year. Don't focus on the amount of your refund (or how much you pay when you file). Focus on your total tax owed for the year. THAT is what should **** you off.

[myway]

Whether you get a refund or not depends on how much tax you withheld during the year. Don't focus on the amount of your refund (or how much you pay when you file). Focus on your total tax owed for the year. THAT is what should **** you off.

Man no kidding. I think the part that ****** me off the most this year is the fact that my 22 year old daughter who is a full time student working a part time job still owed 1000 bucks after what was withheld. Meanwhile let's eliminate some student debt.

[jerp]

A lot of people have gotten raises but did not increase their withholding and tax rates went up some for inflation, hence smaller refunds. I think they should do away withholding all together. If every American had to write a check on April 15th there would be a revolt. Around 65% of taxpayers get a refund - the whole exercise is a colossal waste of time and money

[ThisLadyHunts]

A lot of people have gotten raises but did not increase their withholding and tax rates went up some for inflation, hence smaller refunds. I think they should do away withholding all together. If every American had to write a check on April 15th there would be a revolt. Around 65% of taxpayers get a refund - the whole exercise is a colossal waste of time and money

You are SO right about this! If everyone felt the pain of writing that check on April 15th, I bet there’d be a lot fewer voting for social “niceties” and frivolous bills.

[TXcazador91]

I started noticing it a couple years ago. Every year I owe, so every year I update my withholdings and have my employer take out an additional amount, yet I still end up owing $1-2k.

[Kingfisher789]

Corruption is all I got.

[Greenheadless]

You are SO right about this! If everyone felt the pain of writing that check on April 15th, I bet there’d be a lot fewer voting for social “niceties” and frivolous bills.

This.

And I never want to get a refund. They don’t need to hold onto my money for me.

[dosrobles]

A lot of people have gotten raises but did not increase their withholding and tax rates went up some for inflation, hence smaller refunds. I think they should do away withholding all together. If every American had to write a check on April 15th there would be a revolt. Around 65% of taxpayers get a refund - the whole exercise is a colossal waste of time and money

100% correct. I pay quarterly because I am one of the evil, job creating business owners. Even when we have a bad year and over pay we don’t get a refund, they just deduct the over pay from the next pay.

if people had to write checks for what they owe there would be a revolution. That is still not what they really get. Add property tax, tax on cars, cloths, food, travel, etc. they get closer to 50% than 30 whatever %.

[ThisLadyHunts]

100% correct. I pay quarterly because I am one of the evil, job creating business owners. Even when we have a bad year and over pay we don’t get a refund, they just deduct the over pay from the next pay.

if people had to write checks for what they owe there would be a revolution. That is still not what they really get. Add property tax, tax on cars, cloths, food, travel, etc. they get closer to 50% than 30 whatever %.

Again, SO right!

And those of you who complain about the unfair advantages of the “rich”? Well, guess what? The middle class has been slowly redefined as part of the wealthy class and is being taxed accordingly.

Congratulations. You are now “rich.”

[Landrover]

I have not seen a refund in 2 decades..............welcome to the club!!!