1. You Earned the Same (or Less) Income Than Last Year
One of the most common reasons for a larger refund is if you earn the same or less income compared to the previous year. The IRS adjusts tax brackets and deductions annually to account for inflation. Therefore, the adjustments usually generate a tax benefit, meaning one will owe less in taxes. In other words, if an individual has a steady income, all these changes are beneficial, resulting in a larger tax refund.
What to Do: Review your paycheck or income from the previous year. If you have not seen much increase, you may be in a favorable position to receive a higher in 2025 Tax Refund.
Action Needed: Confirm with your accountant that your withholding and deductions are correctly adjusted for any inflationary changes in the tax code.
Check Your Estimated Refund 2024-2025 (Use Calculator)
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