New tax rules mean bigger refunds, but also more complexity

It's likely to turn into one wild and wonky tax season.

Many people will be thrilled to see larger-than-usual federal income tax refunds — some may end up $500 to $1,000 bigger than a year ago — thanks to several new changes in the tax rules, including special tax deductions on overtime and an extra bonus deduction for many taxpayers age 65 and older.

Last year, the Internal Revenue Service processed more than 165 million individual income tax returns — and about 63% of those taxpayers received refunds. The average refund amount was $3,167.

It's expected that we're looking at up to $100 billion more in tax refunds that will head into bank accounts on top of the $328.88 billion refunded to U.S. taxpayers in 2025. Millions of people could face smaller tax bills, too.

At the same time, though, some tax filers could see refund delays if they're not careful with all the extra paperwork associated with some new attractive tax deductions, including one on new car loan interest.