A big tax refund is always something to celebrate. That is, until you realize that it’s always been yours. In 2025, the average refund amount was $3,052, totaling just under $312 billion, according to the IRS. And while that kind of money hitting your bank account feels great, it also represents a bigger issue: Millions of people are giving the government more than they need to throughout the year. Here’s what that actually means for your money and how to keep more of it throughout the year. Tax Refunds ...

RealPeopleGroup / Getty Images Instead of waiting on a tax refund, tackle your financial goals faster by updating your withholding to boost every paycheck. Key Takeaways A tax refund can feel like a welcome bonus, though it usually reflects money you could have received in paychecks throughout the year. Based on the average tax refund, adjusting your withholding could add about $250 a month to your budget for bills, saving, or spending. Changing your withholding isn’t permanent—you can modify it if y ...

Are you ready for a lot of extra money in your bank account?Getting a tax refund can feel like a windfall. Of course, you are just getting your own money back. But since you receive a large amount of money at once, you get the chance to do bigger things with it, like pay down debt or use it for a big purchase. As a result, many people look forward to tax season when they get their generous direct deposit from the IRS.For those eager to get a refund, 2026 is not going to disappoint. In fact, refunds next yea ...

Tax Policy Changes - The child tax credit received a $200 boost to the maximum amount for the 2025 tax year [2] - Individuals with tipped income can deduct that on their tax return, effective for 2025 [3] - A new $6,000 deduction per senior is available, subject to income thresholds [5][6] Impact of Tariffs - In 2025, tariffs amount to an estimated $1,100 burden per US household on average [7][8] - If tariffs remain in effect, the burden is projected to grow to about $1,400 per household next year [8] - Customs duties on Christmas lights alone have risen to $45 million this year [9] - Tariffs on holiday items have climbed to upwards of $500 million through the first 9 months of 2025 [11] - Toys and board games are subject to tariffs, increasing their cost [13][15] Offsetting Factors - Tax cuts passed by Congress last year will result in larger refunds [16] - The Treasury Department will adjust withholding tables for lower taxes from each paycheck [16] - Tax cuts in aggregate have a larger revenue impact than the tariff hikes [17]

Core Insights - The upcoming tax season will serve as the first evaluation of the benefits from the Trump administration's tax law, referred to as the "One Big Beautiful Bill" [2][4] - Significant changes in tax deductions and credits are expected to lead to higher income-tax refunds for households, with projections suggesting an increase of up to $1,000 in refunds for 2026 [5][14] - The new tax law introduces various deductions, including those for overtime pay, tips, and a senior bonus, which create new planning opportunities for taxpayers [4][18] Tax Breaks and Deductions - Specific income limits apply for various tax breaks, such as $75,000 for individuals aged 65 and older seeking a $6,000 senior bonus deduction, and $500,000 for households wanting the full $40,000 state and local tax deduction [1][7] - The SALT deduction has quadrupled to at least $40,000 through 2029, which will lead to an increase in itemized deductions for 5 to 7 million additional households [10][14] - Taxpayers may need to "bunch" charitable contributions to maximize itemized deductions before the eligibility for such deductions decreases in 2026 [12][13] Refunds and Withholdings - The average tax refund for the current year was $3,052, and the upcoming tax season is projected to be the largest refund season ever [5][14] - Critics argue that larger refunds indicate overpayment of taxes throughout the year, suggesting that individuals should adjust their withholdings to avoid this situation [15][16] - Changes in withholding tables in 2026 may allow taxpayers to see the benefits of tax cuts reflected in higher take-home pay [17] State Tax Implications - States may not uniformly adopt the new federal tax changes, leading to a patchwork of state tax laws that could affect the application of new federal deductions [20][21] - Some states, like Michigan, have already aligned their tax laws with the new federal tax breaks, while others are still determining their approach [22] New Tax-Advantaged Accounts - The introduction of "Trump Accounts" allows parents to open tax-deferred accounts for children under 18, with a $1,000 seed contribution for U.S. citizen babies born between 2025 and 2028 [24][25] - While parents cannot claim a tax deduction for their contributions, there may be potential tax benefits depending on employer contributions and IRS regulations [25][26]

A tax refund feels good because it comes in one lump sum, like a sudden windfall. The truth? That was all your money to begin with that you essentially loaned to the IRS. The average refund in 2025 was around $3,000, which means that if you’re getting a refund, you’re likely overpaying the IRS. Christopher Stroup, CFP and owner of Silicon Beach Financial, explained how to stop. Find Out: I Asked ChatGPT What Would Happen If Billionaires Paid Taxes at the Same Rate as the Middle Class Read Next: 9 Low-Effo ...

Of course, consistently picking winning stocks isn’t easy. That’s why legendary investor Warren Buffett argues that most people don’t need to pick individual companies at all to benefit from the stock market’s long-term growth.The benchmark S&P 500 is up about 16% year to date and has gained roughly 86% over the past five years.The U.S. stock market has been a powerful engine of wealth creation. Trump has pointed to that strength, recently saying, “the only thing that’s really going up big? It’s the stock m ...

Core Viewpoint - Wells Fargo projects a bullish outlook for the S&P 500, expecting it to reach between 7,400 and 7,600 by 2026, indicating a potential gain of up to 11% driven by consumer spending, AI investment, and deregulation [1][2]. Group 1: Market Performance and Projections - The S&P 500 is currently up 16% this year and is on track for its third consecutive year of double-digit gains, having previously logged over 20% gains in both 2023 and 2024 [3]. - Wells Fargo's forecast for the S&P 500 aligns with other positive outlooks, with predictions ranging from 7,100 to 8,000 [2]. Group 2: Key Drivers of Growth - Three main factors are expected to support stock prices in the upcoming year: lower interest rates, benefits from the AI investment cycle, and increased consumer spending due to larger tax refunds from the One Big Beautiful Bill Act (OBBBA) [3][4]. - The OBBBA is anticipated to provide consumers with one of the largest tax refunds in decades, enhancing their spending power [4]. Group 3: Historical Context and Implications - Historical data shows that when the Federal Reserve cuts interest rates while the S&P 500 is near record highs, the index has always been higher 12 months later [5].

Core Insights - Federal income-tax refunds for Americans are projected to increase significantly in 2026, influenced by President Trump's tax law, with individual refunds expected to rise by hundreds of dollars and total refunds by billions [1][2][5] Refund Projections - Average tax refunds could increase by an estimated $675, bringing the typical refund to nearly $3,800 per filer [3] - Intuit's TurboTax estimates suggest taxpayers might receive up to $1,000 more per refund next year, with current averages exceeding $3,000 [4] - Piper Sandler analysts project a collective increase of around $91 billion in refunds for 2025 taxes, translating to approximately $1,000 more per refund for taxpayers [5] Tax Breaks and Legislation - The anticipated increase in refunds is attributed to new and enhanced tax breaks under the One Big Beautiful Bill Act, including provisions like "no tax on tips" and a "senior bonus," which are retroactive to 2025 tax returns [6]

"Next year is projected to be the largest tax refund season ever, and we're going to be giving back refunds out of the tariffs because we've taken in literally trillions of dollars," US President Trump said during a Cabinet meeting at the White House Tuesdayhttps://t.co/aXiTZ4gAGx ...