Your Tax Refund This Year Might Feel Like a Bonus. Here’s why.

Tax season is here. For many of us, that means gathering receipts, logging into confusing software, and hoping we did everything right. But this year, there’s a silver lining that might make the hassle worthwhile: your refund could be significantly bigger.

If your life,your job, your family, your income—has stayed relatively similar since last year. You could be looking at an average of $1,000 more coming back to you. That’s not just wishful thinking; it’s a projection from the Treasury, and tax professionals are seeing it play out.

Why is this happening? It boils down to a simple mismatch: tax laws changed for the better in 2025, but most people’s paychecks didn’t.

As Tom O’Saben of the National Association of Tax Professionals puts it. “Your tax liability went down, but your tax payments didn’t.” So, the money you overpaid is now waiting for you as a larger refund. For some, it might even turn a usual tax bill into a pleasant surprise.

The Changes Putting More Money in Your Pocket

Congress introduced several tweaks, but a few stand out for their wide reach and impact:

1. The Bigger Standard Deduction: This is the one that helps almost everyone. If you don’t itemize your deductions, you automatically get to subtract more income before taxes are calculated. It’s now $750 higher for singles and $1,500 higher for married couples filing together. “It’s a direct reduction to taxable income for millions,” says O’Saben.
2. The SALT Cap Increase (A Big Deal for Some States): If you live in a state with high income or property taxes (think New York, California, New Jersey), this is huge. The limit on deducting those state and local taxes (SALT) jumped from $10,000 to $40,000. You have to itemize to claim it, but for many, this change will make itemizing worthwhile again and could lead to a substantial refund bump.
3. A New Break for Seniors: If you’re 65 or older and meet income requirements, there’s a new $6,000 deduction (or $12,000 for couples) on top of your standard or itemized deductions. It’s a meaningful benefit that the AARP estimates will help over 30 million people.

Your Refund: “Forced Savings” or an Interest-Free Loan?

Let’s be real about what a refund is. On one hand, it’s your own money coming back to you, without interest, after a year-long loan to the government. On the other, for many of us, it’s the most reliable “savings plan” we have—a lump sum we might not have saved on our own.

If that lump sum helps you pay down debt, fund a vacation, or finally build that emergency fund, then it serves a great purpose.

What You Can Do About It Now

If you’d rather have more money in each paycheck this year instead of a big refund next year, you have an option: adjust your tax withholding.

The IRS has already updated its guidelines for employers in 2026 to account for the new tax laws, so you might see a slight increase in your take-home pay already. But to really fine-tune it:

• Talk to a Pro: If you work with a tax advisor, ask them to check if your current withholding aligns with the new breaks you qualify for.
• Tread Carefully if DIY: The IRS’s online withholding estimator hasn’t been fully updated for the 2025 changes yet, so it’s tricky. If you decide to submit a new W-4 form to your employer, make small adjustments. O’Saben advises “a modest adjustment rather than a large reduction.” The goal is to get close to break-even—a tiny refund or a tiny bill—not to swing to owing a large, unexpected amount next April.

The Bottom Line

This tax season, the effort of filing might just pay off a little more handsomely. Think of it as a delayed reward for the financial changes that passed last year. Whether you welcome the lump sum or decide to tweak your withholding for more monthly cash, the key is to understand why it’s happening and make the choice that best supports your financial life. Now, go tackle that return—your potentially plumper refund awaits.