The start of tax season is just weeks away — and many filers could see bigger refunds this year due to 2025 tax changes. The windfall could have broader economic impacts, experts say.
President Donald Trump’s “big beautiful bill” included several provisions for 2025, and the IRS didn’t update tax withholding tables. As a result, paychecks generally stayed the same, and workers could see the benefit when filing returns in 2026. The IRS will start processing individual returns on Jan. 26.
During a prime-time address in December, Trump said 2026 is “projected to be the largest tax refund season of all time.” Tax experts and analysts have agreed that many filers will see bigger refunds.
But refunds or taxes owed depend on which changes impact your situation and how much you paid throughout the year.
Trump’s legislation included several provisions that impact 2025 taxes. These included a bigger standard deduction; a more generous maximum child tax credit; a higher limit for the state and local tax deduction; a new $6,000 tax break for seniors; and new deductions for auto loan interest, tip income and overtime pay, among others.
