The enhanced charitable contribution deductions available in 2020 are also available on 2021 tax returns with a couple of modifications for non-itemizers. The non-itemizer deduction is a below-the-line deduction for 2021 and also the maximum deduction is doubled to $600 for married filing jointly taxpayers.
So before, the child tax credit was $2,000 per dependent. And now it's increased to up to $3,600 for each of your children under six. And then your children from 6 to 17, it's increased to $3,000. And then this is the first time that if you have a child that's 17, you're able to claim the child tax credit.
People who turned 65 by Dec. 31, 2025, are eligible for the new deduction, according to the IRS. The deduction provides $6,000 for each qualifying individual, or $12,000 for married couples who both qualify. The tax break is subject to income limits.
Refunds lower because of mathematical errors
Your tax refund may be lower because of a mistake on your tax return. If that happens, the IRS will correct the return. The agency should send you a letter explaining why the amount is different from what you expected.
While a $10,000 tax refund might sound like a dream, it's achievable in certain situations. This typically happens when you've significantly overpaid taxes throughout the year or qualify for substantial tax credits. The key is understanding which credits and deductions you're eligible for.
There are many events that may reduce your refund, including: Starting an additional job (especially self-employment) Getting a significant raise, but your W-4 staying the same. Selling stock, crypto, or other investments.
The new senior tax deduction of up to $6,000 for single filers and $12,000 for joint filers, was created to help cover taxes on Social Security benefits. Taking the new senior deduction helps to reduce your taxable income, which can mean less tax or potentially an even bigger tax refund when you file your return.
Are Medicare premiums tax deductible? Yes, your Medicare premiums can be tax deductible as a medical expense if you itemize deductions on your federal income tax return. You can only deduct medical expenses after they add up to more than 7.5 percent of your adjusted gross income (AGI).
A 72-year-old individual filer with an income of $70,000 can claim a standard deduction of $15,750. However, they are also eligible for the existing $2,000 standard deduction for seniors, as well as the new $6,000 deduction. That adds up to $23,750 in total deductions, for a taxable income of $46,250.
The 2021 Recovery Rebate Credit includes up to an additional $1,400 for each qualifying dependent you claim on your 2021 tax return. A qualifying dependent is a dependent who has a valid Social Security number (SSN) or Adoption Taxpayer Identification Number issued by the IRS.
However, you can reduce the chance of audit significantly by paying careful attention to detail and recognizing whether you are reporting a transaction of special interest to the IRS. And if you do get audited, having accurate and complete records and professional advice can make the process go more smoothly.
If you missed your 2021 stimulus payment, there Is still time to claim it. The deadline to file for the 2021 Recovery Rebate Credit and receive your stimulus payment is April 15, 2025.
April 15, 2025, is the last day to file your original 2021 tax return to claim a refund. If you miss the deadline, any excess in the amount of tax you paid every paycheck or sent as quarterly estimated payments in 2021 goes to the U.S. Treasury instead of to you.
To raise additional revenue for reform, the ACA imposed excise taxes on health insurers, pharmaceutical companies, and manufacturers of medical devices; raised taxes on high-income families; and increased limits on the income tax deduction for medical expenses.
President Donald Trump's "big beautiful" tax law provides a new senior "bonus" or deduction of up to $6,000 per individual or $12,000 for married couples. The temporary deduction applies to taxpayers ages 65 and over whose income is within certain thresholds.
Five Most Overlooked Tax Deductions
You may be able to deduct 100% of your health insurance premiums for yourself, your dependents or your spouse as a non-itemized deduction if you are self-employed. Report this amount on line 16 of the IRS Schedule 1 form.
The One Big Beautiful Bill Act (OBBBA) or the Big Beautiful Bill (P.L. 119-21), is a U.S. federal statute passed by the 119th United States Congress containing tax and spending policies that form the core of President Donald Trump's second-term agenda. The bill was signed into law by Trump on July 4, 2025.
Under the One Big Beautiful Bill Act (OBBBA), eligible taxpayers can deduct up to $10,000 in car loan interest on their federal tax return for vehicles purchased between 2025 and 2028. To qualify, the vehicle must be new, assembled in the U.S., and include the VIN on your tax return.
The COLA was 2.5 percent in 2025. Nearly 71 million Social Security beneficiaries will see a 2.8 percent COLA beginning in January 2026. Increased payments to nearly 7.5 million people receiving SSI will begin on December 31, 2025. (Note: Some people receive both Social Security benefits and SSI).
Misspelled names. Likewise, a name listed on a tax return should match the name on that person's Social Security card. Entering information inaccurately. Wages, dividends, bank interest, and other income received and that was reported on an information return should be entered carefully.
If you're still waiting for your tax return, you may receive a hefty check in your bank account this month. The Internal Revenue Service is still issuing refunds to those who overpaid on their taxes in 2024.
How to maximize tax return: 4 ways to increase your tax refund