Some taxpayers are taking to Twitter to vent frustrations over their tax refunds or lack thereof. One user said, "Did my taxes, same filing for the past 14 years. I usually get $1000 to $1200 back. This year I owe $245. So why are people seeing this change?" Joining us now to explain is senior personal finance correspondent Sharon Epperson. Welcome, Sharon. This is an important story. Sarah, the IRS just released updated numbers on this year's filing season. The report shows that the average tax refund fell roughly 9% from a year ago to $1949. Now, it's still early in the season and the total number of returns processed is lower than it was this time last year. But what's behind the smaller refunds? One big reason is the tax cuts and Jobs Act, which brought about the most sweeping changes to our tax code in 30 years. As part of the overhaul, many companies lowered the amount of federal taxes they withheld from employees' paychecks. A Treasury official told CNBC that most people are seeing the benefits of the tax cut in larger paychecks throughout the year instead of tax refunds, which are a result of overpaying the government. There are other reasons why some may see smaller refunds or owe money. The new law eliminated several deductions, such as unreimbursed business expenses, and limited others, like the deduction for state and local taxes. The salt deduction is now capped at $10,000, and all these changes may increase your taxable income and as a result, your tax bill. So, if you were caught off guard this year, it may be a good idea to consult a professional who can walk you through your specific tax situation and suggest changes so that you're not surprised again. Many people are...
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