Summary: <p>If you're depending on a tax refund this year to pay loans, make a down payment on a car or take a vacation, you might be out of luck.</p> <p>According to the IRS, average refunds have been <a href="https://www.irs.gov/newsroom/filing-season-statistics-for-week-ending-february-15-2019">lower</a> compared last year. If the trend continues, many Americans will end up with a smaller refund or worse — they may owe the government. Residents in high-tax states, like New York and New Jersey could see a bigger swing because President Trump's tax code overhaul capped deductions for state and local taxes.</p> <p>But it doesn't mean people paid more taxes overall. The amount the IRS withheld from each paycheck was lower, so many people had a little more money each time they got paid. But it's a big change for those Americans who've become accustomed to pocketing some extra cash during tax season.</p> <p>On this episode of Money Talking, <a href="https://www.wnyc.org/people/charlie-herman/" target="_blank">Charlie Herman</a> talks to <a href="https://www.washingtonpost.com/people/heather-long/?utm_term=.515cedaa3c53" target="_blank">Heather Long</a>, economics correspondent for <em>The Washington Post</em>, about why this is happening and the political consequences it might have.</p>
