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Now You Know

DREADED DAY

$2,833

Average tax refund *so far* this year according to the IRS.

Why that number matters and how April 15th become such an infamous day in America.

Now You Know

What to Know:

  • April 15th tax deadline dates back to 1955. It’s more or less, an arbitrary date.
  • Historically, last year’s taxes have been due in March/April to give folks time to prep.
  • Taxes are NOT certain like death (sorry Ben Franklin); Americans voluntarily file taxes as part of our “civic duty.” If you don’t? Expect penalties or even prison time.
Now You Know

Your Tax Refund

  • Avg. amount of refund is $2,833 – about $30 less than last year.
  • That’s approx. $6B fewer refunds.
  • Why It Matters: The avg. refund did not drop significantly as some expected with new tax policy. But latest data shows, total amount of $$ returning to public IS lower, so likely fewer receiving refunds.
Now You Know

Why It Matters:

“…refunds influence the timing of household spending.”

UBS analysis on retail spending. There's some debate about the overall impact of tax filings/refunds. Some believe fewer refunds will undoubtedly impact the economy in the short term as people feel less "rich." Others say Americans benefited from the new tax policy throughout the year.
Now You Know

In an ideal scenario, you would NOT get a tax refund (even though it feels good when you do!). Receiving a refund means you overpaid in taxes during the year; you're only getting your own money back, although it's without interest!

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