Tax Foundation estimates the OBBBA reduced individual taxes by $129 billion for 2025, and outside estimates suggest up to $100 billion of that could be received as higher refunds this filing season, pushing average refunds up by up to $1,000.
(Additionally, for tax year 2025, the OBBB raises the standard deduction amount to $31,500 for married couples filing jointly. For single taxpayers and married individuals filing separately, the standard deduction for 2025 is $15,750, and for heads of households, the standard deduction is $23,625.)
After filing taxes in early 2026, the average taxpayer may receive a refund that's between $300 to $1,000 more than the previous year's, according to the Tax Foundation, a nonpartisan think tank in Washington, D.C.
Tax Foundation estimates the OBBBA reduced individual taxes by $129 billion for 2025, and outside estimates suggest up to $100 billion of that could be received as higher refunds this filing season, pushing average refunds up by up to $1,000.
The IRS in October released new federal income tax brackets for 2026. The inflation-based change increased the income ranges for the two lowest tax brackets by about 4%, and the higher ones by roughly 2.3% compared to 2025.
Rumors of a universal $ 3000 check from the IRS have gained traction on social media, but these claims are not true. As of 2025, there is no federal program authorizing a new $ 3000 stimulus, rebate, or automatic payment to all Americans.
Some of the major tax changes effective from April 1, 2025, are revised tax slabs, rebate of up to Rs. 60,000, revised ITRU deadlines, calculation of partner's remuneration allowable as a deduction and revised TDS/TCS threshold limits. What is the Rebate available under section 87A?
April 10, 2025, the House adopted the Senate's amended version of the budget resolution, which allows $5.3 trillion in deficit-financed tax cuts (the combination of $3.8 trillion of tax cuts assumed to be “costless” under a current policy baseline plus $1.5 trillion in additional deficits permitted), deficit increases ...
The IRS $600 rule refers to a change in reporting requirements for third-party payment apps (like Venmo, PayPal) for taxable income from goods and services, where platforms must send a Form 1099-K if you receive over $600 in a year, intended to capture gig economy/side hustle income, though delays and phased implementation have adjusted the timeline, with current rules for 2024 using a higher threshold ($5,000) before fully phasing to $600 for future years, but remember all taxable income, regardless of form, must always be reported.
Taking advantage of tax credits and deductions, like the Earned Income Credit and Child and Dependent Care Credit, can reduce the amount you owe in taxes, while reviewing your W-4 to adjust withholding and revisiting your filing status could potentially help you figure out how to get a bigger tax refund.
Many are wondering if the Income Tax Department delays processing refunds if the refund amount is large, such as over Rs 50,000. According to income tax rules, there is no upper limit on refunds. Whether your refund is Rs 10,000 or Rs 1 lakh or even greater, it will be credited the same way.
The information in this article is up to date for tax year 2025 (returns filed in 2026). Most refunds will be issued within 21 days after the return has been accepted, according to the IRS. The IRS typically sends out refunds on a schedule.
To avoid the 22% tax bracket (or any higher bracket), focus on reducing your taxable income through strategies like maxing out 401(k)s and HSAs, deferring bonuses, tax-loss harvesting, smart charitable giving, and strategic asset location, understanding that higher rates only apply to income within that bracket, not your entire income.
For the 2025 tax year (filing returns in 2026) these adjustments, including federal income tax brackets, increased on average by about 2.8%.
Under the new income tax regime for 2025-26, any taxable income up to ₹12,00,000 attracts a full rebate of ₹60,000 (under Section 87A), resulting in a nil tax liability.
The 2025 tax legislation signed into law by President Trump, commonly referred to as the One Big Beautiful Bill Act, largely preserves the existing capital gains tax framework. Long-term capital gains rates remain set at 0%, 15% and 20%, with no changes to the underlying brackets.
You likely received $1400 from the IRS today as a supplemental payment for the 2021 Economic Impact Payment (EIP3), specifically the Recovery Rebate Credit, for people who missed it by not claiming it or leaving it blank on their 2021 tax return. These are "plus-up" payments for those eligible for the third stimulus but didn't get the full amount, often for dependents or due to income changes, with a deadline to claim it by April 2025 by filing a 2021 return if you hadn't already.
The standard deduction for 2025 was raised to $15,750 for single filers, up from the $15,000 previously in place. For married couples filing jointly, it is increased to $31,500, up from $30,000.
If you didn't account for each job across your W-4s, you may not have withheld enough, so your tax refund could be less than expected in 2026. Or, if you had a salary increase in 2025 but didn't update your tax withholding accordingly, you could receive a smaller refund.