As reported by CPA Trendlines , as of February 27, 2015 total tax refunds are down 1.8%, which is 882,000 fewer refunds than this time last year.
Tax professionals have submitted 4.4% fewer e-files year over year with just 28,733,000 e-file receipts versus 30,053,000 in 2014.
On the other hand self-prepared e-files are up 6%, with an overall increase of 0.3 in overall e-filing receipts.
It’s too early to tell, but there could be several factors in play here. We know the errors in the Marketplace subsidies have put around 750,000 taxpayers behind schedule by making them wait for the corrected 1095-A forms. This year more taxpayers are opting for the DIY programs and trying to save money. Maybe more people are just waiting longer to file this year as well?
With all of the free and cheap do-it-yourself software that has come out, it is tempting many to give it a shot and save some money. This is especially true for those who are not expecting a return or didn’t have insurance coverage in 2014. Unfortunately this will also increase the chances that people will try and bend the rules in attempt to inflate deductions, as they won’t have a tax preparer to guide them and decline any wrong doing.
We will know more when the final analytics come out at the end of the season. In the meantime, we are happy to hear that the average refund is up 2%, which is great news for all of us!
