Your 2025 tax return and what’s new in this year's tax filing season

The Internal Revenue Service (IRS) typically starts accepting returns in late January. Here's what you need to know about 2025 tax returns & refunds this year.

As tax season approaches again, many Americans are wondering what refunds, adjustments, and surprises might be in store. With inflation-adjusted tax brackets, expanded deductions, and significant changes under the “One Big Beautiful Bill Act” (OBBBA) now in effect, this year’s tax filing experience could look a bit different from prior seasons.

What's new for the 2025 tax year (2026 filing season)

As you prepare to file your taxes in 2026, it’s essential to understand what’s changed for the 2025 tax year — the income you earned last year. While the overall structure of the federal tax system remains intact, the IRS has made several inflation-related adjustments that could affect how much you owe or how much you get back.

• Updated 2025 federal tax brackets For the 2025 tax year, the IRS kept the same seven marginal tax rates — 10%, 12%, 22%, 24%, 32%, 35%, and 37% — but adjusted the income thresholds upward (by about 2.8%) to account for inflation. These changes are designed to prevent “bracket creep,” in which taxpayers end up paying higher rates simply because wages rise alongside inflation.

  
  

  In practical terms, this means slightly more of your income may be taxed at lower rates compared to the previous year, which could help reduce your overall tax liability if your earnings stayed relatively flat.
  

• Higher standard deduction for 2025 The standard deduction increased again for the 2025 tax year, giving most taxpayers a larger portion of their income that isn’t subject to federal tax:
  

  • Single filers & married filing separately: $15,750

  • Head of household: $23,625

  • Married filing jointly: $31,500

    
    

  Because most taxpayers now claim the standard deduction rather than itemize, this shift alone may result in a smaller tax bill or a larger refund for many households during the 2026 filing season.
  

• Child Tax Credit The maximum credit increased to $2,200 per qualifying child.
  

• Inflation adjustments across the board In addition to tax brackets and the standard deduction, the IRS adjusted dozens of other tax provisions for 2025, including limits tied to credits, exclusions, and income thresholds. These changes don’t always receive much attention, but collectively they can have a meaningful impact—especially for families, retirees, and middle-income earners.
  

• New deductions and tax breaks that could boost your refund Thanks to the OBBBA and other recent law changes, several new tax benefits may impact your 2026 refund:
  

  • Extra deduction for seniors from 2025 to 2028 Taxpayers age 65 and older ($6,000 single, $12,000 married filing jointly) can claim additional standard deduction amounts — and in some cases, a bonus senior deduction that can reduce taxable income further.
    

  • No federal tax on specific tips and overtime Under OBBBA provisions, qualifying tip income up to annual limits ($25,000) and a portion of overtime pay (up to $12,500) may now be exempt or deductible, benefiting many service-industry workers.
    

  • Expanded SALT deduction limits The cap on state and local tax (SALT) deductions has increased significantly (up to $40,000 for many taxpayers), offering larger itemized deduction opportunities for filers in high-tax states — though income limits may apply.

    
    

How much 2025 tax refund can you expect this tax season

When taxpayers file their 2025 returns during the 2026 tax season, many are expected to receive larger refunds than they’ve seen in recent years. This increase is primarily tied to the “One Big Beautiful Bill Act” (OBBBA), which lowered individual income taxes for 2025 by an estimated $144 billion. However, because IRS withholding tables were not updated after the law was enacted, most workers continued having more taxes withheld from their paychecks than necessary. Rather than benefiting from the tax cuts through higher take-home pay throughout the year, many taxpayers will effectively receive those savings in a lump sum when they file their tax returns.

According to the Tax Foundation, the tax bracket ranges for the 2025 tax year are set to increase by an average of $750 for single filers and $1,500 for joint filers.

Increase in standard deduction for the 2025 tax year

The standard deduction, preferred by 90% of taxpayers over itemizing, has increased significantly due to inflation adjustments and new legislation. Seniors over age 65 may claim an additional standard deduction of $2,000 (single or head of household filers) and $1,600 (married filing jointly or separately).

Compared to the previous year, the standard deduction will see an increase by:

• $1,150 for single and married individuals filing separately,

• $1,725 for head of household filers, and

• $2,300 for married couples filing jointly.

The Earned Income Tax Credit will be increased

The maximum Earned Income Tax Credit amount for qualifying taxpayers who have three or more qualifying children in 2025 is $8,046 — an increase of $216 compared to the 2024 tax year. The IRS provides a table in its revenue procedure that lists the maximum EITC amounts for other categories, income thresholds, and phase-outs.

But please also consider that the IRS could use all or part of your refund to pay off your debts, including:

• past-due federal or state income tax,

• state unemployment compensation debts,

• child support, spousal support, and

• student loans.

Some loans currently on a repayment pause, such as federal student loans, commercially held federal family education loans, or FFELP debt, may be exempt from tax.

Entering into an installment agreement, however, does not exempt you from any outstanding tax you may owe. The installment agreement stipulates that the IRS will automatically apply any refund to the outstanding tax amount. You should continue making your payments as usual, since your refund won't be offset against your regular monthly payment.

More tax inflation changes were made

Some items adjusted for inflation by the IRS include:

• The maximum adoption credit increases to $17,280,

• individual estate tax exemption rises to $13.99 million,

• The 401(k) contribution limit increases to $23,500,

• the annual exclusion for gifts increases to $19,000 ($1,000 more compared to 2024),

and much more can be found under the IRS’s news releases.

Filing Dates, Deadlines & when to expect your Tax Refund in 2026

Although the IRS will announce exact processing dates each year, you can generally expect the following:

• IRS starts accepting tax returns:

  Typically, in late January 2026

• Tax filing deadline:

  April 15, 2026 (unless it falls on a weekend or holiday),

  June 15, 2026, for overseas filers

• Extension deadline:

  October 15, 2026, for those who file for an extension.

According to the most recent information available, the IRS still anticipates issuing more than nine out of ten refunds in less than 21 days, if you:

• file electronically,

• rely on direct deposit,

• file without a tax refund loan or similar products, and

• experience no problems with your return.

The IRS also stated that most e-filed tax refunds can be directly deposited into taxpayers' bank accounts within as little as 10 days after the IRS receives the return.

If you filed a paper tax return, your tax return may take between 3 and 4 weeks to be processed, or longer if you expect a tax refund.

Besides filing on paper, we've listed several other factors and their delay time, which can determine when taxpayers might receive their tax refund:

• Up to six months Filing the Form 1040-NR – requesting a refund of tax withheld on Form 1042-S
  

• One month Claimed EITC (Earned Income Tax Credit) or ACTC (Additional Child Tax Credit)
  

• Up to five days Filing late March through April 15 (during peak season)
  

• Avoiding delays Only if you are still awaiting processing of your 2023 tax return for acceptance by the IRS, enter $0 for last year’s AGI (Adjusted Gross Income) on your 2025 tax return. All other taxpayers should enter the correct AGI from last year's return.
  

How to check on your Refund Status

Typically, you can access details about your refund within 24 hours of the IRS acknowledging the receipt of your electronically filed return or approximately four weeks following the paper return submission.

Working with tax professionals like VauntCourier ensures you receive your tax refund faster! Independent of your tax preparer, if you’d like to know how far along your return has already been processed, you can simply use the IRS website tool “Where’s My Refund?” or the IRS mobile app “IRS2Go” from your smartphone. To Access both you’ll need your:

• SSN,

• filing status, and

• refund dollar amount
  

shown on your tax return.

The “Where’s My Refund?” status is displayed in three stages:

1. Return Received It literally means what it says —the IRS has acknowledged receipt of your tax return.
   

2. Refund Approved Your refund will be prepared for transfer to you using your chosen payment method.
   

3. Refund Sent Your refund is on its way! Before checking with your bank wait at least five days. Remember that bank policies on the availability of deposit funds may vary. You can count on approximately 6-8 days for delivery if you've requested a paper check.
   

If the “Where is My Refund” status indicates that you should call or submit additional information, do so immediately.

For amended returns, please use the IRS “Where’s My Amended Return?” tool, and note that it'll take longer to be processed by the IRS.

You can also call the automated hotline to check on your 2025 refund or to report a lost, stolen, or destroyed refund check:

• Regular Returns 1.800.829.1954

• Amended Returns 1.866.464.2050

You can’t initiate a trace using the automated hotline if you've filed jointly—then you’ll have to complete Form 3911 (PDF).

Tips on what to avoid while waiting for your 2025 tax refund

Many taxpayers find it difficult to wait for their tax refunds. To make it easier for you, here are some tips on what to avoid:

• Avoid making a time-sensitive purchase Without having your tax refund in hand. If we've learned anything in recent years, it's that things often don't go to plan. Even if you believe to know what you're getting, and the IRS expects to issue timely refunds this year, don't spend money that you don't already have. File electronically & avoid paper returns.
  

• Don't call your tax preparer to check on the status of your tax refund They have no other information in their system that isn't available from the IRS. Pay special attention to EIP, EITC, and CTC submissions
  

• Never file a second return Some taxpayers believe that filing a second tax return defers their refund to an earlier date. It will likely just do the opposite!

VauntCourier will assist you every step of the way!

Appointments are available at our Wiesbaden Office, Clay Kaserne Office, or via Online Video Chat (Teams, Zoom, Google Meets, WhatsApp, or any other service you prefer)

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