The average premium for Obamacare enrollees is expected to more than double next year when the tax credits expire. https://t.co/EjavdkdYLd (Photo: Heather Diehl via Getty Images) https://t.co/WmpAhZBTs0 ...

Core Insights - The average tax refund in 2025 was approximately $3,000, indicating that many taxpayers are overpaying the IRS by withholding too much throughout the year [1] - Common reasons for overpayment include outdated W-4 forms, missed deductions, and unclaimed credits, particularly affecting dual-income households and those with equity compensation [2][3] - Adjusting W-4 forms to accurately reflect dependents, credits, and actual income can help taxpayers avoid excessive withholding and large refunds [3] Reasons for Overpayment - Taxpayers often provide the IRS with an interest-free loan due to incorrect withholding practices, leading to larger refunds than necessary [2][3] - Signs of overpayment include oversized refunds, inconsistent paychecks, and low take-home pay, with a refund of $1,000 or more being a key indicator [4] Missed Tax Breaks - Many taxpayers fail to claim valuable credits and deductions, such as the saver's credit, child and dependent care credit, and student loan interest deductions, which could reduce their tax bills [5] - Renters and homeowners often overlook state-level benefits and energy-efficiency credits, respectively, as well as charitable contributions made through payroll or stock donations [5] Monitoring Overpayment - Mid-year checks can help taxpayers assess whether they are on track for a large refund or unexpected tax bill by reviewing year-to-date withholding against projected income [6] - Taxpayers receiving equity compensation should conduct mid-year reviews, as bonuses and restricted stock units can unexpectedly increase tax liability [6]

Core Insights - Filing taxes as "married filing separately" can lead to unexpected financial consequences due to the tax code's treatment of this status, which may result in higher tax bills and reduced deductions and credits Group 1: Tax Bracket Implications - Filing separately compresses tax brackets, leading to higher tax bills as income thresholds are significantly reduced, often cutting in half compared to joint filers [2][3] - This compression disproportionately affects dual-income households or couples with uneven earnings, resulting in higher overall taxes unless both spouses have equal income [3] Group 2: Loss of Tax Credits - Many valuable tax credits, such as the earned income tax credit, child and dependent care credit, and education credits, are lost or diminished when filing separately [4] - The child tax credit remains available but becomes harder to qualify for due to phaseouts starting at half the income level [4] Group 3: Education Credits - Households with college students or adults in graduate programs face significant losses as education credits are not available under the "married filing separately" status, even if one spouse pays all qualified expenses [5] - Neither spouse can claim the American opportunity credit or lifetime learning credit, which can result in thousands of dollars in lost benefits [5] Group 4: Deductions Limitations - Several common deductions are severely restricted under the "married filing separately" status, including the complete disallowance of student loan interest and immediate phase-out of IRA deductibility unless spouses lived apart all year [6] - Basic deductions such as educator expenses or health savings account contributions also become harder to qualify for, impacting high-income couples significantly [6]

Watch live coverage as White House press secretary Karoline Leavitt holds a press briefing as the Senate votes on two health care measures from Democrats and Republicans amid a fast-approaching deadline that could increase costs for millions of Americans. Both plans, are almost certain to fail. After they do, lawmakers will have only a matter of days remaining to address the expiration of the enhanced tax credits, and there's little indication that any sort of breakthrough is on the horizon. » Subscribe to ...

Watch live coverage as Senate Minority Leader Chuck Schumer (D-NY) holds a press conference ahead of Thursday's expected vote on an extension of enhanced Affordable Care Act tax credits, an issue that was at the center of Democrats' demands in the shutdown fight. The vote was part of an agreement to reopen the longest government shutdown in history, which came to an end when a group of eight Senate Democrats joined Republicans to end the impasse last month. That deal included a promise from GOP leaders to a ...

Taxpayers miss billions of dollars in credits for retirement savings contributions, lifetime learning costs and more. https://t.co/FKnlrOe3Ul ...

US Homeowners’ Rush to Get Expiring Solar Tax Credits Creates Bottleneck https://t.co/Y9cMjZ1Tiu ...

US homeowners are rushing to install solar panels and batteries before the Dec. 31 deadline for tax credits. But there’s one major obstacle https://t.co/nzEN0zbnXN ...

Senate Democrats have decided what kind of healthc [music] care bill they want to vote on. Remember this was Republican leader John Thun's pledge [music] to the other party when they voted to reopen the government last month. Democratic leader Chuck Schumer announced his members will force a vote on a bill to extend the expiring Affordable [music] Care Act tax credits for 3 years.That bill is unlikely to pass. Some Republicans have said they would vote for a proposal that extends the credits by one or two y ...

Discussions remain at a standstill over subsidies for the Affordable Care Act. Yesterday, the Senate left for the Thanksgiving holiday. Um, nothing that's planned at this point, so we are still in wait and see mode.Joining us right now is House Minority Leader Hakee Jeff to talk a little bit more about this. And sir, can you lay out um without any partisan bent kind of where things stand right now just so Americans understand what's happening. Well, the Affordable Care Act tax credits are going to expire on ...