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Morgan Stanley Forecasts that Tax Refunds in 2019 will be about 26% Greater than 2018

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the staff of the Ridgewood blog  says

Ridgewood NJ, Taxes will be lower for most people this year because of the GOP’s tax bill passed last December. According to Morgan Stanley, Americans have been overwithholding significantly, and the investment bank forecasts that refunds in 2019 will be about 26% greater than 2018. In raw dollars, this is $62 billion more than last year’s $235 billion in refunds that were issued this year, as of April.

According to Morgan Stanley Americans have not adjusted their tax withholdings and still withhold too much on their payroll taxes.All the extra money in Americans’ pockets will likely boost savings accounts and the sales of big-ticket items next February and March, Morgan Stanley says.In 2018, according to survey numbers cited by Morgan Stanley, 65% of consumers planned to save their refunds, 35% said they’d pay down debt, and just 5% said they’d make a major purchase .

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