12/29/2025
It’s all over the news… 💰 𝗕𝗶𝗴𝗴𝗲𝗿 𝘁𝗮𝘅 𝗿𝗲𝗳𝘂𝗻𝗱𝘀 𝗮𝗿𝗲 𝗲𝘅𝗽𝗲𝗰𝘁𝗲𝗱 𝗶𝗻 𝟮𝟬𝟮𝟲.
Experts say many taxpayers — especially W-2 employees — could see refunds $𝟭,𝟬𝟬𝟬–$𝟮,𝟬𝟬𝟬 𝗵𝗶𝗴𝗵𝗲𝗿 than usual.
That’s true — 𝗯𝘂𝘁 𝗵𝗲𝗿𝗲’𝘀 𝘄𝗵𝘆.
Recent tax law changes applied retroactively, while withholding didn’t change in 2025, so more tax was taken out of paychecks than necessary.
⚠️ 𝗜𝗺𝗽𝗼𝗿𝘁𝗮𝗻𝘁 𝘁𝗼 𝗸𝗻𝗼𝘄:
A bigger refund usually 𝗺𝗲𝗮𝗻𝘀 𝘆𝗼𝘂 𝗼𝘃𝗲𝗿𝗽𝗮𝗶𝗱 𝗱𝘂𝗿𝗶𝗻𝗴 𝘁𝗵𝗲 𝘆𝗲𝗮𝗿 — essentially giving the IRS an interest-free loan.
𝗧𝗵𝗲 𝗴𝗼𝗼𝗱 𝗻𝗲𝘄𝘀?
Not only could refunds be larger this coming tax season, but 𝗽𝗮𝘆𝗰𝗵𝗲𝗰𝗸𝘀 𝗶𝗻 𝟮𝟬𝟮𝟲 𝘀𝗵𝗼𝘂𝗹𝗱 𝗯𝗲 𝗵𝗶𝗴𝗵𝗲𝗿 once employers update their withholding tables. 🤑
𝗙𝗼𝗿 𝘀𝗲𝗹𝗳-𝗲𝗺𝗽𝗹𝗼𝘆𝗲𝗱 𝗶𝗻𝗱𝗶𝘃𝗶𝗱𝘂𝗮𝗹𝘀:
This doesn’t work the same way. Refunds (or balances due) depend on 𝗵𝗼𝘄 𝗮𝗰𝗰𝘂𝗿𝗮𝘁𝗲𝗹𝘆 𝗲𝘀𝘁𝗶𝗺𝗮𝘁𝗲𝗱 𝗾𝘂𝗮𝗿𝘁𝗲𝗿𝗹𝘆 𝘁𝗮𝘅𝗲𝘀 𝘄𝗲𝗿𝗲 𝗽𝗮𝗶𝗱 — not on paycheck withholding.
Hopefully this brings clarity (and some financial relief) heading into the new year.🫡
DM with questions !
