Introduction to the 2026 Tax Season
The IRS has officially kicked off the 2026 tax season, and with it comes several changes stemming from President Donald Trump’s 2025 tax legislation that could impact individual tax returns for 2025. Approximately 164 million individual tax returns are expected to be filed before the April 15 deadline, with many potentially receiving larger tax refunds due to the recent tax cuts.
According to Andrew Lautz, director of tax policy for the Bipartisan Policy Center, a nonprofit think tank, “The size of refunds is a major political topic” as the 2026 midterm election approaches. Typically, the size of a refund or the amount due depends on taxes paid the previous year via paycheck withholdings or estimated payments. In 2025, the average refund for individual filers was $3,052 through October 17, as reported by the IRS.
Expected Changes and Their Impact on Refunds
Several factors are likely to drive higher refunds during the 2026 filing season, including the 2025 tax cuts and withholdings. Notably, after Trump’s 2025 tax changes, the IRS did not update withholding tables for employers, which many workers will experience when filing their returns in 2026. The Trump administration has proposed various policy ideas focused on affordability as many Americans continue to struggle with the rising cost of living.
A recent TaxSlayer survey found that more than half of Americans are unaware of how Trump’s 2025 tax law changes will affect them. The survey polled 2,000 filers in November, highlighting a significant knowledge gap among taxpayers regarding the new tax laws.
Which Tax Breaks Could Affect Your Refund
The size of refunds or taxes owed will vary significantly depending on individual circumstances, according to a January 15 analysis by the Tax Foundation. Trump’s 2025 tax law made permanent his 2017 tax breaks, which is “mostly continuity from the current status quo,” as stated by Garrett Watson, director of policy analysis at the Tax Foundation, a nonprofit think tank.
The legislation includes several notable changes, such as a bigger standard deduction, a more generous maximum child tax credit, a higher limit for the state and local tax (SALT) deduction, a $6,000 tax break for seniors, and deductions for auto loan interest, tip income, and overtime pay, among others.
Who Could See a Bigger Tax Refund in 2026
For 2025, the standard deduction increased to $15,750 for single filers and $31,500 for married couples filing jointly, up from $15,000 and $30,000, respectively. This change is expected to result in larger refunds for the 85% to 90% of taxpayers who claim the standard deduction each year, according to Lautz.
Additionally, a new $6,000 “bonus” deduction for seniors aged 65 and up could provide significant relief. The full deduction is available to those with up to $75,000 in modified adjusted gross income or $150,000 for married couples filing jointly. Many families could also see a bigger child tax credit, with the maximum credit increasing to $2,200 from $2,000.
Conclusion and Further Information
As the 2026 tax season progresses, understanding these changes will be crucial for taxpayers looking to navigate the new landscape. For more detailed information and to stay updated on tax policies, visit Here
Smart Tip for Readers
To ensure you’re taking full advantage of the new tax breaks, consider consulting a tax professional or using reputable tax preparation software to guide you through the filing process. This can help you accurately claim deductions and credits you’re eligible for, potentially leading to a larger refund or reduced tax liability.
