{"id":282578,"date":"2025-08-16T11:30:37","date_gmt":"2025-08-16T15:30:37","guid":{"rendered":"https:\/\/futbolete.com\/us\/?p=282578"},"modified":"2025-08-16T11:30:37","modified_gmt":"2025-08-16T15:30:37","slug":"bigger-tax-refunds-irs-2026","status":"publish","type":"post","link":"https:\/\/futbolete.com\/us\/bigger-tax-refunds-irs-2026\/","title":{"rendered":"Here\u2019s Why Your Next IRS Tax Refund Might Be Bigger Next Year"},"content":{"rendered":"

The Internal Revenue Service (IRS)<\/strong> implemented automatic inflation adjustments applicable to tax year 2025<\/strong>, with filings occurring during the 2026 season<\/strong>. The standard deduction increased to $15,000 for single filers and $30,000 for married couples filing jointly<\/strong>.<\/p>\n

Simultaneously, updates were made to income tax brackets<\/strong>, Alternative Minimum Tax (AMT)<\/strong> exemption thresholds,<\/strong> and Earned Income Tax Credit (EITC)<\/strong> parameters. These modifications, based on legally mandated formulas tied to the consumer price index, have the potential effect of lowering the taxpayer’s final tax liability.<\/p>\n

All together, this new scenario could result in higher tax refunds or a reduced payment due at filing time<\/strong>. Let’s take a closer yet easy-to-get overview of what we could expect next year.<\/p>\n

Bigger tax refunds in 2025? Here’s what the IRS explains<\/h2>\n

Additionally, the enactment of the “One Big Beautiful Bill” (OBBB) legislation<\/strong> introduced multiple substantial changes to the U.S. tax system. One notable provision raises the cap on the state and local tax (SALT)<\/strong> deduction from $10,000 to $40,000<\/strong> for joint filers, or $20,000<\/strong> for individual taxpayers.<\/p>\n

This change holds particular significance for residents in jurisdictions with high local tax burdens<\/strong>. The law also establishes specific deductions for certain types of wage income: up to $25,000<\/strong> for tip income<\/strong> and up to $12,500<\/strong> for overtime pay<\/strong>, subject to defined income limits.<\/p>\n

The Child Tax Credit (CTC)<\/strong> expands from $2,000 to $2,200<\/strong> per qualifying child. This increase represents a direct boost to the potential tax refund for households with dependent children. For taxpayers over age 65, the OBBB law creates a temporary additional<\/strong> deduction<\/strong> reaching up to $6,000<\/strong>, designed to further reduce their taxable income.<\/p>\n

Another new provision includes an interest deduction tied to loans for vehicles assembled within the United States, capped at $10,000.<\/strong><\/p>\n

So yes, the IRS could send bigger tax refunds in 2026<\/h2>\n

The IRS has confirmed that, despite these regulatory changes, no modifications will occur to federal income tax withholding tables or the design of core forms like W-2 or 1099-NEC<\/strong> for tax year 2025. This decision implies that amounts withheld from wages throughout the year will remain at levels similar to prior periods.<\/p>\n

The combination of steady withholding with expanded deductions and increased credits<\/strong> at filing time creates a scenario favorable for more taxpayers experiencing larger refunds<\/strong> when submitting their 2026 returns. Sources like RB News reported this administrative approach.<\/p>\n

Preliminary data from the 2025 tax season<\/strong> already indicates an upward movement in average refund amounts. Reports state the average refund reached approximately $2,945<\/strong>, representing a 3.3% increase<\/strong> compared to the prior tax year.<\/p>\n

This initial growth is attributed, at least partly, to the application of automatic inflation adjustments to basic deductions.<\/strong> The observed trend suggests a positive direction that could be reinforced or even accelerated during the 2026 filing season<\/strong>, when benefits introduced by the OBBB Law begin to fully manifest in<\/strong> filed returns<\/strong>. The Sun disseminated these figures.<\/p>\n

Concurrently, a tax reform proposal advanced by House Republicans is under discussion. The draft includes additional measures that, if approved, could further increase potential refunds. These encompass a broader Child Tax Credit expansion<\/strong>, a not-that-bad $4,000 specific deduction for filers over 65<\/strong>, the formalization of deductions for overtime and tips<\/strong>, and the creation of specialized children’s savings accounts, styled as “MAGA” type plans.<\/p>\n

Parts of this proposal could take effect within the current year, directly impacting the 2026 refund season<\/strong>. Politico.com detailed the legislative initiative’s content.<\/p>\n","protected":false},"excerpt":{"rendered":"

The Internal Revenue Service (IRS) implemented automatic inflation adjustments applicable to tax year 2025, with filings occurring during the 2026 season. The standard deduction increased to $15,000 for single filers … Read more<\/a><\/p>\n","protected":false},"author":4,"featured_media":282580,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[44,45],"class_list":["post-282578","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance","tag-irs","tag-tax"],"_links":{"self":[{"href":"https:\/\/futbolete.com\/us\/wp-json\/wp\/v2\/posts\/282578","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/futbolete.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/futbolete.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/futbolete.com\/us\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/futbolete.com\/us\/wp-json\/wp\/v2\/comments?post=282578"}],"version-history":[{"count":0,"href":"https:\/\/futbolete.com\/us\/wp-json\/wp\/v2\/posts\/282578\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/futbolete.com\/us\/wp-json\/wp\/v2\/media\/282580"}],"wp:attachment":[{"href":"https:\/\/futbolete.com\/us\/wp-json\/wp\/v2\/media?parent=282578"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/futbolete.com\/us\/wp-json\/wp\/v2\/categories?post=282578"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/futbolete.com\/us\/wp-json\/wp\/v2\/tags?post=282578"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}