Due to the OBBB tax changes being made effective in 2025, and the lack of withholding adjustments by the IRS, it is likely that many people will get higher tax refunds for the 2025 tax year when they file in 2026. In some cases, the refund will be significantly higher.
For me, I had the same amount withheld as I did in 2024. However, due to the tax law changes, I will be receiving about 1/2 of what I withheld back as a refund, or about 20X the refund I received last year. Unfortunately, I did not determine thisuntil earlier this month. To help correct this, I reduced my withholding for the rest of the year to $0. Still, I will get about 15X the refund I got last year even though I am withholding 17% less than last year.
For more on New Beginnings, check back every Sunday for a new segment.
This is not financial nor tax advice. Please consult a professional advisor.
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