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2025 Tax Filing Season Opens with Larger Refunds Expected
The 2025 tax filing season officially started this Monday, with policymakers predicting that tax refunds could be $1,000 larger than the previous year. Learn more about the impact of the tax cuts under President Trump and how it may increase your tax refund this year on FOX Business.
Larger Refunds Due to the One Big Beautiful Bill Act
The One Big Beautiful Bill Act (OBBBA), the tax reform package passed by lawmakers last year, is said to bring a bumper year for tax refunds. Jason Smith, R-Mo., the Chairman of the House Ways and Means Committee, disclosed that American taxpayers could receive an additional $91 billion in tax refunds this year. This sets the stage for a record-setting $370 billion refund season.
Impact of the OBBBA on Taxpayers
According to Smith, the average family can expect their refund to be $1,000 more compared to the previous year. For instance, a family with two children earning $73,000 will have zero tax liability. Smith attributes the increased refunds to the new tax relief provisions in the OBBBA, which are retroactive to 2025 incomes. The tax filing season is already in full swing, get to know all the details you need.
Administration’s Estimates of Tax Returns
Officials in the Trump administration have also given similar estimates on the size of the tax refunds this filing season. Treasury Secretary Scott Bessent cited that refunds could be between $1,000 and $2,000 larger due to the tax relief provisions of the OBBBA. For more information on these provisions, check out IRS guidance for Trump’s ‘No Tax on Tips’ and overtime deductions.
Impact on Household Finances
Large tax refunds could help households stabilize their finances as Americans continue to face high prices for everyday goods such as groceries, housing, and healthcare. If you’re planning your retirement, learn about the updated retirement contribution limits for 2026.
IRS Data on the Previous Tax Filing Season
According to IRS data, the average refund for the 2025 tax filing season increased to $3,167, showing a 0.9% gain from 2024. Over 103.8 million tax refunds were issued, marking a 1% decrease from the previous year. Almost most of these refunds were issued via direct deposit, with more than $304 billion disbursed back to taxpayers.
Checking Your Refund Status
After filing their 2025 tax returns, taxpayers can check the status of their refund using the IRS’ “Where’s My Refund?” tool. Stay updated with FOX Business for all the latest updates and information related to tax filing season.
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Title: “2025 Tax Filing Season: Larger Refunds Expected Due to OBBBA”
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