IRS And White House Assure Tax Refunds Will Stay On Schedule—Too Good To Be True?

source: Washington Post

According to a statement issued from the White House on Monday, the Internal Revenue Service will issue the year 2018 tax refunds as per usual, even if the government is still in a partial shutdown.

According to the New York Times, reporters were assured by White House Office of Management and Budget acting director Russell Vought that the 2018 tax refunds will indeed go out as they normally do and without any expected problems or delays. 

The announcement was made on the seventeenth day of the continued partial shutdown of the government, in an effort to assure taxpayers that chose to file their 2018 taxes early that their returns will be processed as normal.  Many taxpayers who file early do so because they are dependent on their anticipated refund.

As a rule, the IRS usually starts accepting tax returns at the end of January, with some early filers actually receiving their refunds as early as February, the following month.  On average, refunds are usually between $2899 and $3031, which is a large sum to be waiting to hit the mailbox.  

Many taxpayers us the refunds in one of many ways, such as to pay down debt or to make a large purchase.  Then there are those individuals who chose to put their refunds into savings and let it collect interest. 

There were some changes to the income law for 2018, and these changes may or may not affect most households.  Medical deductions changed, in that if you itemize your deductions, you may claim medical expenses for 2018 if they exceed 7.5% of your adjusted gross income.  

Personal casualty loss will play a big part in refund claims, in that they were expanded to include any claim made in a federally declared disaster area—such as the Mississippi River Delta Flood Disasters Area.  This particular claim is currently retroactive back to 2016.

The act of expensing property, even if used, for your business for the first year has increased up to 100%.  This pertains to any business put into operation after September 27, 2017, thru January 1, 2023.  The bill now includes the definition of qualified property to include film, television and theatrical presentations and projects as well, granted they were released after September 27, 2017.

These are just a few of the tax law changes that are in effect and could possibly impact your refunds bottom line.  Add to this the fact that the IRS has assured taxpayers that the partial government shutdown will in no way hinder the delivery of their refund checks, and you can see that the beginning of 2019 will be a good one for many taxpayers.

Will the government hold true to keeping the schedule of refunds to taxpayers?