Washington (CNN) Americans are seeing smaller refunds this year thanks to the 2017 tax reform -- and the Treasury Department says that's a good thing.

The average refund is down nearly 9% so far this filing season, according to updated data released Thursday by the Internal Revenue Service. Refunds averaged $1,949 through February 8, compared to $2,135 for returns filed through the same period last year.

"Most people are seeing the benefits of the tax cut in larger paychecks throughout the year, instead of tax refunds that are the result of people overpaying the government," a Treasury spokesperson said in a statement. "Smaller refunds mean that people are withholding appropriately based on their tax liability, which is positive news for taxpayers."

This year's filing season, the first under the 2017 Republican tax overhaul , is being closely watched as individual Americans begin to feel the impact of the biggest tax reform of the last 30 years.

The new rules lowered most individual rates and nearly doubled the standard deduction. The legislation also included sweeping tax cuts for companies, lowering the corporate rate to 21% from 35%.

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