BIRMINGHAM, AL (WBRC) - According to the Internal Revenue Service, the average refund handed out so far this tax season is $1,865. That’s down more than 8% from last year.
“It has to do with withholding, and all the ways you calculate your tax is going to be different this year,” said Stewart Welch, founder of The Welch Group.
According to the financial experts, some Americans saw their take home pay go up after the new tax code went into effect.
However, for those who didn’t adjust their withholding, they might see a smaller refund.
"Do your tax return as quickly as possible. You may wait and file it, but you need to go ahead and do the calculations and make sure you’re not going to owe taxes. Because you don’t want to file late and have a penalty,” said Welch.
There are also millions of Americans who have itemized their deductions in the past who will now be taking the standard deduction.
“If you pay big property taxes, that’s going to affect you. If you pay big state taxes, that’s going to affect you,” said Welch.
While more folks might be getting smaller returns, Welch does think the big picture is still promising. "Overall, 80% of taxpayers make more money out of the tax reform, so that’s good news,” he said.