Early returns are coming in and President Donald Trump's tax reform has dropped H&R Block clients' tax liability by almost 25% with red states receiving larger reported increase in tax refunds, CNN reported.
While H&R Block clients in lower-tax red states are seeing the larger increase in refunds, several blue states are getting the largest average tax cuts compared to the prior year, according to data through the end of March.
"They come out better under the new law," tax research analyst Nathan Rigney told CNN. "They get significant rate decreases. They're also not paying AMT [alternative minimum tax], and so they're actually allowed to deduct up to $10,000 SALT [state and local tax] deduction they didn't get any benefit from in the past."
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The tax shop's data through the end of March does show average refunds up a mere 1.4% for those who claimed a refund each of the past two years, though, according to the report.
The backlash of the smaller refunds, although taxpayers are overall on the hook for less, has been apparent on social media, according to Rigney.
"It's that expectation, and this is sort of human behavior about loss aversion: We're a lot more likely to feel the pain of a loss than enjoy that small gain, and that's what we're seeing," Rigney told CNN.
While the data suggests otherwise, just 17% think they are paying less taxes, according to a recent NBC News/Wall Street Journal poll, while 28% think they are paying more.
The incomplete data might be skewing the results to date, as many people who claim refunds tend to file before the end of March, while those who are forced to pay tend to file closer to the April 15 deadline, Rigney told CNN.
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