{"id":40528,"date":"2026-01-26T21:28:42","date_gmt":"2026-01-26T21:28:42","guid":{"rendered":"https:\/\/financialrush.com\/?p=40528"},"modified":"2026-01-26T21:28:42","modified_gmt":"2026-01-26T21:28:42","slug":"tax-season-opens-how-trumps-tax-cuts-will-impact-your-return","status":"publish","type":"post","link":"https:\/\/financialrush.com\/?p=40528","title":{"rendered":"Tax season opens. How Trump’s tax cuts will impact your return"},"content":{"rendered":"

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Fcafotodigital | E+ | Getty Images<\/p>\n<\/div>\n<\/div>\n<\/div>\n

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The IRS kicked off the 2026 tax season<\/a> on Monday, and filers will see changes from President Donald Trump<\/a>‘s “big beautiful bill”<\/a> that could impact their 2025 returns.<\/p>\n

About 164 million individual tax returns<\/a> are expected before the April 15 deadline, and many could receive bigger tax refunds<\/a> after Trump’s 2025 legislation, experts say. \u00a0\u00a0<\/p>\n

“The size of refunds is a major political topic” with the 2026 midterm election approaching, Andrew Lautz, director of tax policy for the Bipartisan Policy Center, a nonprofit think tank, told reporters during a call on Thursday.\u00a0<\/p>\n<\/div>\n

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Read more CNBC personal finance coverage<\/h2>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n
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Typically, a refund or balance due depends on taxes paid the previous year via paycheck withholdings<\/a> or estimated payments<\/a>. In 2025, the average refund <\/a>for individual filers was $3,052 through Oct. 17, according to the IRS.<\/p>\n

“There are a lot of things that are likely to drive higher refunds [during the 2026] filing season,” including 2025 tax cuts and withholdings, Lautz said. <\/p>\n

After Trump’s 2025 tax changes, the IRS didn’t update withholding tables<\/a> for employers, and many workers could see the <\/strong>effect of that when filing returns in 2026. <\/p>\n<\/div>\n

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The Trump administration has floated a number of policy ideas focused on affordability<\/a> as many Americans continue to struggle with the rising cost of living expenses<\/a>.<\/p>\n

However, more than half of Americans don’t know how Trump’s 2025 tax law changes<\/a> will impact them, according to a new TaxSlayer survey, which polled 2,000 filers in November.<\/p>\n

Here’s what taxpayers can expect during the 2026 filing season. <\/p>\n<\/div>\n

Which tax breaks could impact your refund<\/h2>\n
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This season, refund size or taxes owed “will vary significantly” depending on individual circumstances, according to a Jan. 15 Tax Foundation analysis<\/a>.<\/p>\n

Trump’s 2025 tax law made permanent his 2027 tax breaks, which is “mostly continuity from the current status quo,” Garrett Watson, director of policy analysis at the Tax Foundation, a nonprofit think tank, told CNBC.<\/p>\n

However, the legislation also included a bigger standard deduction; more generous maximum child tax credit; a higher limit for the state and local tax, or SALT, deduction<\/a>; a $6,000 tax break for seniors<\/a>; and deductions for auto loan interest<\/a>, tip income<\/a> and overtime pay, among others. <\/p>\n<\/div>\n

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Who could see a bigger tax refund in 2026<\/h2>\n
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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.<\/p>\n

“That’s going to result in larger refunds for the 85% to 90% of taxpayers who claim the standard deduction each year,” Lautz said. <\/p>\n

Another tax break that could impact many filers is the new $6,000 “bonus” deduction<\/a> for seniors age 65 and up. The full deduction is available with up to $75,000 in modified adjusted gross income or $150,000 for married couples filing jointly.\u00a0<\/p>\n

Many families could also see a bigger child tax credit. For 2025, the maximum credit is $2,200, up from $2,000. <\/p>\n

Meanwhile, the SALT deduction and tax breaks for tip or overtime income could provide “much larger” cuts, but fewer filers will qualify, Lautz previously told CNBC<\/a>.<\/p>\n<\/div>\n<\/div>\n\n
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