Posted on 02/24/2015 1:50:02 PM PST by E. Pluribus Unum
Customers are paying back an average of $530, which has caused a 17 percent drop in the average return so far this spring, according to the analysis by the tax services giant.
H&R Block has predicted that “most filers” would owe some of their subsidies back to the federal government because they were relying on 2012 income.
The new data, which was released Tuesday, only represents about six weeks of tax filings. Still, it could pose a significant challenge for the administration as it faces an already tough tax season.
“It’s costing taxpayers a large percentage of their refund – a refund many of them count on to pay household expenses,” Mark Ciaramitaro, vice president of H&R Block health care and tax services, wrote in a statement.
Last week, the Department of Health and Human Services asked 800,000 people to delay their tax filings because the agency sent out the wrong forms. The average refund so far this year is about $3,000, according to H&R Block.
Officials said last week that less than 10 percent of people had filed their taxes.
so much for free health care or saving $2500!
A lot of EIC in those “refund” numbers.
I don’t think it is “locking up” so much. It’s from the EIC is my guess.
That is why you see so many big ticket items advertised during tax season. The only way a lot of us can pay cash for these items is with those tax refund checks.
“It’s costing taxpayers a large percentage of their refund – a refund many of them count on to pay household expenses,” Mark Ciaramitaro, vice president of H&R Block health care and tax services, wrote in a statement.
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A lot of these folks count on their tax ‘refund’ to pay off their Christmas bills & make large, needed purchases like appliances when old ones go kaflooey. This is going to cause some kind of wailing & gnashing of teeth ..... no opportunity should be missed to remind these folks WHO voted for OBAMAcare. Not.one.single.Republican.
Most people look at it as a forced savings. They’ll spend their last dime if it’s in their pocket so it’s better to have the government save it for them. It’s the only way they’ll ever have that amount of cash all at once.
I have plenty of low income relatives that love their refunds.
I used to have just or not quite enough held out of my paycheck. I’d rather pay in a little at tax time than let the government use my money interest free.
Now that I’m retired, I don’t have anything withheld and pay the entire amount at tax time.
Why would someone lock up so much money all year long? Shaking my head....
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The majority aren’t ,, this is likely EITC refund dollars not cash overpayments being refunded.
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