Tax Refund Surge Ahead — These People Will Get the Biggest Refunds!

"So, in today's video, I'm going to explain to you what happens. Okay, let's begin here. President Trump's one big beautiful bill that passed in July changes our taxes in a massive way for a lot of people. So, we're talking about this is going to be for 2025, the tax refund that you're going to see on your tax filing in early 2026. So, just a few months away."

"Now, according to JP Morgan's forecast, they expect that the average tax refund is going to be $3,743 in this upcoming tax filing season, which is about $500 more than last year or 15% higher."

"It's because his new bill created new tax deductions. So these new tax deductions backdate and begin on January 1st of 2025, at least for most of them."

"So, we're going to begin with seniors because they're going to get an extra standard deduction, like an additional amount. So, if you're 65 years or older on or before December 31st, so by the end of this year, then the standard deduction for you is going to increase by $6,000 as a single taxpayer. If you're married filing jointly, then the standard deduction is going to increase. It's a additional amount of $12,000."

"Another group of people that are going to be affected by this will be tipped employees because of the no tax on tips. So the new tax deduction will allow a maximum tax deduction of $25,000."

"So the maximum tax deduction is going to be if you're single, $12,500. If you're married filing jointly, your max deduction is going to be $25,000."

"The maximum tax deduction has increased from $10,000 to 40,000, which is a big jump up, of course."

"The old law was $2,000 per child. The new law is now $2,200 per child."

"The car loan interest deduction. If you buy an American assembled car, the interest on your auto loan is now tax deductible, but you have to qualify, of course. And here are the details. The maximum annual deduction is going to be $10,000."

"Now, regarding the economic impact of these larger tax refunds, it is expected to spur economic activity and boost GDP by an extra 0.5% in Q1 of 2026."

"You can expect larger paychecks in 2026, so next year compared to this year in 2025. Or in other words, your take-home pay is going to increase next year because these new tax rules are going to lower your taxes and the IRS tax tables and payroll systems, they're going to reflect that accordingly and appropriately next year in your paycheck calculations."

"But that means that the following tax filing season, so the one that you're going to file in 2027, you should expect the smaller tax refunds in 2027 compared to 2026."