Biggest Refund Boosters To Take Advantage of for Tax Year 2025

Most tax filers don’t pay much attention to the often-subtle changes in the tax code from year to year. However, filing in 2026 will look very different as changes related to the One Big Beautiful Bill Act take effect. Are you prepared to get the biggest refund possible when you file your 2025 taxes?

Read on for more information about what will change in the coming tax season compared to prior years, and for some steps to take to boost your refund based on these changes.

What Changes Are Taking Effect for the 2025 Return?

There are a host of changes, both big and small, that will take effect for the tax year 2025, including significant impacts for seniors, parents of young children, business owners, homeowners, and more. These could have an effect on the taxes you pay in 2026. Here are the important changes to take note of:

1. Senior Exemption

Seniors 65 years of age and older may claim an additional $6,000 per year deduction through tax year 2028, per the OBBBA. This is on top of the pre-existing standard deduction for seniors and applies on an individual basis, meaning that a married couple filing jointly may be eligible for an extra $12,000 in deductions. The deduction phases out for those with modified adjusted gross income over $75,000 (or $150,000 for couples filing jointly).

2. New Provisions for Families With Young Children

The OBBBA permanently expanded the federal child tax credit, indexing it for inflation and increasing it to $2,200. The adoption credit is also enhanced, with up to $5,000 now refundable. Additionally, families may open so-called “Trump Accounts” for children under 18. Individuals and employers can fund these savings accounts up to $5,000 per year. U.S. citizens born between Jan. 1, 2025, and Dec. 31, 2028, will receive a one-time $1,000 contribution from the federal government.

3. Qualifying Equipment Deductions for Business Owners

Self-employed filers and business owners may now be eligible to deduct 100% of the cost of qualifying equipment in 2025, provided that the equipment was placed into service on or after Jan. 20, 2025.

4. Deduction Changes and Repeals

Most of the shifts in deductions initiated with 2017’s Tax Cuts and Jobs Act (TCJA) are now permanent thanks to the OBBBA, including the larger TCJA standard deduction. The OBBBA also makes permanent the seven tax brackets established by the TCJA, adjusting the first two for inflation. They are now 10%, 12%, 22%, 24%, 32%, 35% and 37%. Aside from the senior exemption above, personal exemptions for individuals, spouses, and dependents are now removed.

5. Changes for Homeowners and Workers

For those owning or buying property, the state and local taxes (SALT) deduction cap increased to $40,000 from $10,000 in the prior tax year for most incomes. Meanwhile, home green energy credits have been allowed to expire. Workers who earn overtime or tips may be eligible to claim new dollar-for-dollar deductions for income up to $12,500 ($25,000 for joint filers).

How To Evaluate Your Refund Outlook

The first step to evaluating your tax refund this year should be to compare your 2024 and 2025 income to see how the newly confirmed tax brackets might impact your filing. It’s also important to consider which credits and deductions you rely on—these may depend on your age, homeownership, employment type, family, and more. You may even be able to make deductions on interest paid on a car loan.

To go along with the above, check your withholding status to ensure that it matches your new tax reality. It may be that your previous withholdings are prepaying too much or not enough of your tax liability based on the new rules.

Biggest Refund Boosters for Your 2025 Return

Some of the most practical and high-impact strategies for maximizing your refund in the upcoming tax return season include:

1. Grouping Deductions or Accelerating Charitable Giving

Based on changes to deductions, it may now make sense for some filers to itemize deductions when they may not have before. Adopting a different approach, including grouping deductions or increasing charitable giving, may help boost a refund in these cases.

2. Maximize Last Year’s Retirement Contributions

Keep in mind that you have until the tax filing deadline to make contributions for qualified retirement accounts such as Roth and traditional IRAs. If you have additional cash available at the time of your tax filing, maximizing your IRA with a boost to your 2025 contributions can be a way to gain benefits without jeopardizing the amount of money you’ll be able to contribute for 2026 as well.

3. Potentially Realize Gains in 2025

You may want to consider realizing investment gains in 2025 if rates may be lower. In particular, changes for cryptocurrency investors will mean receiving a Form 1099-DA for the first time for many investors; even if you do not receive this form, you’ll still be expected to report income from crypto trades.

4. Watch Out for Specialized Deduction or Credit Eligibility

The OBBBA did cancel certain benefits previously available, such as credits on green energy investments for a home or on certain clean energy vehicle purchases. However, many tax filers in 2026 will still be eligible, depending on when they made purchases or updates. For instance, new and used clean vehicle credits are still permitted for filers who bought those vehicles up to and including September 30, 2025. It pays to research whether family, education, and energy credits that are shifting with the new tax year are still possible in tax year 2025.

The Bottom Line

The tax landscape is shifting in many important ways heading into the tax year 2025 filing season. Some deductions and credits have gone away, while others—including for seniors, homeowners, business owners, workers earning overtime or tips, and more—have expanded or begun for the first time. This presents tax filers with an opportunity to potentially boost their refunds this year, but it’s necessary to consider all of the implications of new tax rules to determine where you stand first.