Are we getting big tax refunds this year?

Editorial team Published on

Yes, federal tax refunds were larger on average during the 2026 tax filing season.

Key Refund Details

  • Average Refund Size: The national average refund reached $3,462, representing an increase of roughly 11% (about $346 more) compared to the previous year's average of $3,116.
  • Why They Increased: The larger payouts were primarily driven by retroactively applied tax cuts from the One Big Beautiful Bill Act passed in 2025. Because the IRS did not update its withholding tables mid-year, workers continued standard withholding amounts despite lower overall tax liabilities, creating an overpayment windfall at filing time.
  • Specific Provisions: Contributing factors included a $200 increase to the maximum Child Tax Credit (to $2,200), increased standard deductions, and temporary deductions for senior citizens, tip income, overtime pay, and vehicle loan interest.
  • Expectations vs. Reality: While some administration projections anticipated average increases closer to $1,000, actual tracking by the Bipartisan Policy Center and the IRS showed average individual increases landed closer to $225–$350 depending on income brackets and filing status. Future refund seasons are expected to normalize as withholding formulas update.

How do people get $10,000 tax refunds?

People get $10,000 tax refunds either by over-withholding money from their paychecks throughout the year or by stacking large refundable tax credits.

1. Over-Withholding From Paychecks

A tax refund is simply your own money being returned to you because you paid more than you owed.

  • If you have extra money taken out of each paycheck on purpose—or by setting your W-4 form with higher withholding—the government holds that cash all year.
  • When you file your taxes, the total extra amount accumulated over 12 months is handed back to you as a lump sum.

2. Stacking Refundable Tax Credits

Refundable credits lower your tax bill below zero and pay the remaining balance directly to you. Five-figure refunds often happen when lower-to-moderate-income families combine multiple credits:

  • Earned Income Tax Credit (EITC): Can be worth over $8,000 for families with three or more qualifying children.
  • Child Tax Credit (CTC) / Additional Child Tax Credit: Provides substantial refundable amounts per child.
  • Education and Dependent Care Credits: Programs like the American Opportunity Tax Credit or Child and Dependent Care Credit add extra funds.

3. Business Deductions and Losses

Some taxpayers generate large refunds by turning personal expenses into business assets (such as side-hustles or rental properties on platforms like Turo). Deducting business expenses, vehicle interest, and depreciation can create paper losses that offset standard W-2 income taxes already paid, creating a large refund.

Who gets the new $6000 tax break?

Taxpayers who are age 65 or older by the end of the tax year and meet specific income thresholds can claim the Internal Revenue Service bonus deduction.

Eligibility Requirements

  • Age: You must turn 65 by December 31 of the applicable tax year.
  • Identification: You must have a valid Social Security number for employment.
  • Filing Status: Married individuals must file a joint return to qualify; the deduction is not available for married filing separately.

Income Limits and Phase-Outs

The $6,000 deduction per eligible individual ($12,000 for married couples filing jointly if both are 65+) is subject to modified adjusted gross income (MAGI) limits:

  • Single Filers:
    • Full deduction available if MAGI is $75,000 or less.
    • Phased out gradually for income above $75,000.
    • Completely phased out at $175,000.
  • Married Filing Jointly:
    • Full deduction available if combined MAGI is $150,000 or less.
    • Phased out gradually for income above $150,000.
    • Completely phased out at $250,000.

Key Details

  • Duration: This temporary provision applies to tax years 2025 through 2028.
  • Itemizing: You do not need to itemize deductions to claim it; it is available whether you take the standard deduction or itemize.
  • Stacking: It stacks on top of the existing additional standard deduction for older adults.

Does everyone get a $3,000 tax refund?

No, everyone does not get a $3,000 tax refund.

The Truth About the $3,000 Refund Rumor

  • No flat stimulus program: The IRS does not have a special program or stimulus that gives everyone a flat $3,000 check.
  • Where the number comes from: $3,000 is close to the average refund amount that the IRS issues to many taxpayers during tax season.
  • How refunds actually work: A tax refund is simply getting your own money back because you paid or had too much withheld from your paycheck during the year. If you did not overpay your taxes, you will not get a $3,000 refund.

Who Actually Gets a Refund Around $3,000?

Your refund amount is based on math specific to your personal financial situation:

  • Withholding: You had too much federal income tax taken out of your job's pay stubs.
  • Tax credits: You qualify for large credits like the Earned Income Tax Credit (EITC) or the Child Tax Credit.
  • Deductions: Your deductions lowered your overall taxable income.

Will I get the GA surplus refund?

You can check your status and eligibility using the Georgia Surplus Tax Refund Portal.

Eligibility Requirements

You will generally get the Georgia surplus tax refund (authorized under HB 1000) if you meet these rules:

  • Filed both your 2024 and 2025 Georgia individual income tax returns by the deadlines (including extensions).
  • Had a positive tax liability for 2024.
  • Were a resident, part-year resident, or nonresident who paid into the system.
  • Do not owe past-due state taxes or child support debts to the state.

Refund Amounts

Your payout depends on your filing status and 2024 tax liability, up to these caps:

  • $250 for Single or Married Filing Separately
  • $375 for Head of Household
  • $500 for Married Filing Jointly

How Do I Stop Getting A Big Tax Return?

9 related questions found

Will I get a bigger tax refund in 2026?

Yes, you may get a larger tax refund thanks to changes from the One Big Beautiful Bill Act and annual inflation adjustments.

Why Refunds May Be Bigger

  • New Deductions: The tax law created temporary deductions for tips, overtime pay, senior benefits, and auto loan interest.
  • Larger Standard Deduction: Standard deduction amounts increased due to inflation and legislative updates.
  • Adjusted Tax Brackets: The IRS adjusted brackets for inflation, which can lower your overall tax liability.

What Individual Results Depend On

  • Your Withholdings: If your employer did not adjust your paycheck withholdings after tax cuts passed, you may have overpaid and built up a larger refund.
  • Life Changes: Changes to your income, marital status, or dependents will still impact your final return.
  • Deductions & Credits: Check specific income limits on the new TurboTax Deductions Guide to see if you qualify.

What is the average tax refund for a single person making $100,000?

The average federal tax refund for taxpayers in the $100,000 to $199,999 income bracket is approximately $4,188 to $4,258.

Key Details About Tax Refunds and Income

  • Income Brackets: IRS data compiled by sources like The Motley Fool Average Tax Refund Guide shows that higher-income earners often receive larger refunds because they have larger total tax withholdings throughout the year.
  • Refund Rate: Only about 55% of filers in the $100,000–$199,999 bracket receive a refund, compared to roughly 68% of overall taxpayers, meaning many higher-earning single filers owe money or aim for a $0 balance.
  • Not a Set Amount: A tax refund is not a set bonus or benefit; it is simply the return of overpaid money from your paycheck withholdings minus your actual tax liability.

What is the most overlooked tax deduction?

State and local sales taxes (instead of state income taxes) and out-of-pocket charitable expenses are widely considered among the most frequently missed tax breaks by filers.

Because tax software and standard checklists often focus on big-ticket items like mortgages and major cash donations, smaller or flexible write-offs slip through the cracks. Review the most commonly overlooked deductions below to see if you qualify.

Top Overlooked Deductions

  • State Sales Tax vs. Income Tax: You can choose to deduct either your state and local income taxes or your state and local general sales taxes. This is especially helpful if you live in a state with no income tax (like Florida or Texas) or if you made a major purchase like a car or boat during the year.
  • Out-of-Pocket Charitable Contributions: Cash donations get all the attention, but non-cash items (like clothing or household goods given to charity) and the standard mileage rate for driving to volunteer work are fully deductible.
  • State Income Taxes Owed from Prior Year: If you paid additional state income tax when you filed your previous year's state return, that extra amount paid can often be deducted on your federal return for the year you actually paid it.
  • Reimbursements and Premiums for Self-Employed: If you are self-employed, you might forget to write off health insurance premiums, qualified Medicare premiums, or standard mileage for business trips that weren't tracked through a formal payroll.
  • Out-of-Pocket Classroom Expenses: Eligible educators can deduct unreimbursed expenses for books, supplies, and equipment used in the classroom.

You can read more detailed checklists on the TurboTax Guide to Overlooked Deductions or explore H&R Block's Deduction Overview.

Are seniors over 65 getting a stimulus check?

Seniors over 65 are not receiving a new general government stimulus check, but an enhanced tax deduction is available instead.

The Senior Tax Deduction

  • Enhanced Tax Break: Individuals aged 65 and older can claim an enhanced senior tax deduction of up to $6,000 (or $12,000 for married couples filing jointly if both qualify).
  • Income Limits: This deduction phases out for single taxpayers with an income over $75,000 and joint filers making over $150,000.
  • Purpose: The deduction is designed to help shield Social Security benefits from income taxation.
  • How to Claim: You can check your eligibility details through the IRS Senior Deduction Guidance. It is claimed directly on your federal tax return by indicating your age, without needing a separate application.

Beware of Scams

  • No Stimulus Payments: Rumors regarding new, broad "fourth stimulus checks" or general relief checks circulating online are false.
  • Stay Safe: Do not click on unverified links, share personal banking information, or pay anyone promising to unlock a hidden stimulus check or cash payout.

Does a 70 year old have to pay taxes on Social Security?

A 70-year-old may have to pay taxes on Social Security, because the IRS bases tax rules on total income rather than your age.

How Tax is Decided

The Social Security Administration uses a "combined income" formula to check if your benefits are taxable.

  • Combined Income equals your adjusted gross income (your regular taxable money like pensions or wages) plus any tax-exempt interest, plus half of your annual Social Security benefits.
  • If Social Security is your only income, you generally do not pay federal income tax or need to file a return.

Federal Income Thresholds

If you have other money coming in, your tax rate depends on your filing status and combined income:

Single Filers

  • Under $25,000: You pay 0% tax on your benefits.
  • $25,000 to $34,000: Up to 50% of your benefits may be taxed.
  • Over $34,000: Up to 85% of your benefits may be taxed.

Married Filing Jointly

  • Under $32,000: You pay 0% tax on your benefits.
  • $32,000 to $44,000: Up to 50% of your benefits may be taxed.
  • Over $44,000: Up to 85% of your benefits may be taxed.

State Taxes

Most U.S. states do not tax Social Security benefits. Only nine states still tax them in some form: Colorado, Connecticut, Minnesota, Montana, New Mexico, Rhode Island, Utah, Vermont, and West Virginia.