This tax season could put an extra $1,000 in homeowners’ pockets - what you need to know

Tax season has officially started as the IRS opened tax filing for 2025 returns on Monday. Last year, the average tax refund was $3,052, but refunds are expected to be higher this year. Families may see about $1,000 more in their refund checks compared to last year. The House Ways and Means Committee chair said taxpayers are seeing the biggest tax relief and refunds ever.

Rep. Jason Smith said workers will see the benefit soon, he also added people will feel it when tax refunds arrive this spring. Families may get about $1,000 more in refunds than last year, reported by Realtor. These tax changes come from a new law. The law is called the One Big Beautiful Bill Act, it became law on July 4, 2025 law changes federal taxes. It also changes tax credits and deductions. Many taxpayers across the country are affected.

Bigger refunds for families

Many people may get bigger refunds or owe less tax because the law applies retroactively. The Working Families Tax Cuts increased the standard deduction by $1,500 per family and made the higher deduction permanent. The law also made permanent the lower tax rates from the 2017 Trump tax cuts. Tips are no longer taxed under the new law. Overtime pay is also no longer taxed.


Social Security income is no longer taxed. The Child Tax Credit was increased to $2,200 and will rise with inflation, as stated by Realtor. The law expands access to child care and makes the paid leave tax credit permanent. 529 education savings accounts were expanded to give families more education choices. Every newborn child will now get a $1,000 savings account for their future.

Big tax break for homeowners

This is big good news for homeowners. The government changed the SALT tax rule. The SALT deduction limit went up from $10,000 to $40,000. This helps families who pay high state and local taxes, it mostly helps people living in high-tax states. Earlier, many homeowners could not deduct more than $10,000. Now they can deduct much more money, because of this, more people may itemize deductions.

Itemizing means listing expenses to pay less tax. This can lower taxable income, lower income means lower total tax. Americans must file their 2025 tax return by April 15, 2026. The IRS expects about 164 million tax returns, according to Realtor. Most people will file taxes online, the IRS gives free tax help to eligible people. Most tax refunds come within 21 days after filing.

People can check their refund status online. You can track refunds 24 hours after e-filing. Paper filers must wait about four weeks. The IRS strongly recommends using an IRS Individual Online Account. These online accounts let people view tax info, make payments, manage messages, and protect personal data.

FAQs

Q1. Who will get the extra $1,000 tax refund this season?

Families and workers may see about $1,000 more in refunds due to new tax law changes and bigger deductions.

Q2. How does the SALT deduction help homeowners now?

Homeowners can deduct up to $40,000 in state and local taxes, which can lower their total tax bill.