The average refund this year as of February 2nd was only $1,395. Federal refunds over the same period last year were $1,963.
This is a drop of 28.9%, but the average refund is likely to change as more are processed.
Refunds that include refundable credits like the Earned Income and Child Tax Credits cannot be processed until mid-February by law. The reason for the hold up is the amount of fraud that’s so prevalent in these sorts of returns.
Early data shows that the return of credits and allowances to their pre-pandemic levels is the reason behind this year’s smaller tax refunds. Don’t expect what you received last year.
Things have changed. Lower your expectations.
Once you get past all of the statistics and other numbers there’s something else to consider in the numbers. After 34 years of doing returns, one thing is always common.
People expecting a larger refund file at the beginning of the season. Taxpayers who know they’re going to owe big numbers wait until the last minute. If the refunds are down that far at the beginning of the season, imagine what will happen at the end.
When you factor in that phenomenon these numbers take on a whole new light.
Once again. Tax law has changed. Lower your expectations. If you were planning on a refund, it will probably be lower this year.
Don’t call me. I can’t do anything about it. The law is the law. Call the White House or the State House, and express your concerns.
Maybe they’ll do something about it. Maybe they won’t.
Let me leave you with this…
Chicago is now the third largest casino market in the country. Congratulations.
Commercial casinos won $66.5B from gamblers in 2023. The opening of two new casinos in downtown Chicago and Waukegan increased our winnings to $2.19B. This was an increase in revenues of 2.5% which made us the third largest gaming center in the country.
Am I the only person surprised by this? When I think of gambling meccas, I think of Vegas and Atlantic City, not the Chi.
But now there are slot machines everywhere we go from gas stations to bars, and from liquor stores to restaurants.
I remember many years ago when they were trying to sell Chicagoans on the concept of the Lottery. Remember all the promises they made on how it would solve the problems of our education system and lower our property taxes.
Of course, all of this newer gaming was introduced with many of the same old promises. Has any of it come true? Or did they just discover more exotic and ridiculous ways to spend our money.
One last thing.
Please think about the numbers. $66.5B was won by commercial casinos in the US in 2023. Once the winnings from the reservation gaming facilities are added in, the number is expected to grow to over $110B.
Put your money in your retirement fund instead of a slot machine. You’ll never consistently beat the house.
We’re all going to get through this. Let’s get through it together.
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