economy
January 26, 2026
Why federal tax refunds may be bigger than usual
Tax-filing season has officially begun and will run though April 15.
TL;DR
- Tax filing season runs through April 15.
- Average tax refunds are projected to increase by $1,000 per household this year.
- Reasons for increased refunds include new/expanded tax breaks and unchanged tax withholding.
- The standard deduction has increased by $750 for single filers and $1,500 for married couples filing jointly.
- The SALT deduction limit has increased to $40,000 for those who itemize.
- A new $6,000 deduction is available for seniors aged 65 and older.
- Consider adjusting paycheck withholding to potentially increase take-home pay or reduce future tax bills.
- Modest adjustments to withholding are recommended to avoid underpayment issues.