Tax Season Could Provide A $1,000 Boost for Homeowners

Tax season is officially underway as the Internal Revenue Service opened its portal Monday for Americans to begin filing 2025 taxes.

The average amount refunded last tax season was $3,052, according to the IRS, but that amount is expected to increase. This season, families may see an average of $1,000 more in their refund checks compared to 2025.

The House Ways and Means Committee Chair said this year filers are seeing the "largest tax relief and refunds in history."

“Workers will see how the Working Families Tax Cuts put more money in their pockets when they get their tax refund this spring," Rep. Jason Smith, House Ways and Means Committee chair said. "Families can expect an average of $1,000 more in their refund compared to last year."

The tax changes are a result of the One, Big, Beautiful Bill Act which was signed into law July 4, 2025. Its passage affects federal taxes, credits, and deductions.

"Many taxpayers will have bigger refunds, or smaller balances due, when filing their 2025 tax returns, thanks to retroactive tax law changes made by the summer’s ‘One Big Beautiful Bill Act (OB3),' Jason Stanfield, Ph.D., accounting professor at Ball State University and American Accounting Association member, tells Realtor.com®.

Here's what the Working Families Tax Cuts provides:

• Increases by $1,500 per family and makes permanent the doubled standard deduction.
• Makes permanent the lower tax rates from the 2017 Trump tax cuts
• No tax on tips
• No tax on overtime
• No tax on Social Security
• Boosts the Child Tax Credit to $2,200 and indexes it to inflation
• Expands access to child care and makes permanent the paid leave tax credit
• Expands 529 savings accounts to help families choose education that best fits their needs
• Provides a $1,000 savings account to support the future of every newborn child

One of the biggest tax changes for homeowners is the State and Local Taxes (SALT) deduction. In the past, homeowners could only deduct up to $10,000, but now it's been raised to $40,000 for eligible households.

"This increase will particularly benefit homeowners in states with high property taxes who previously were hitting the $10,000 limitation," Stanfield explains. "This increase will undoubtedly lead some taxpayers, who would otherwise take the standard deduction (not itemized deductions), to itemize and lower their taxable income and tax liabilities."

Taxing times

Americans have until April 15, 2026 to file their 2025 tax returns and pay any taxes due.

The IRS expects to receive about 164 million individual income tax returns this year, with most taxpayers filing electronically.

There are also free tax prep services provided by the IRS.

Once the IRS has received a tax return, the agency says most refunds are issued in fewer than 21 days. You can follow up on the status of your refund within 24 hours after the IRS receives an e-filed return; and if you mailed a paper return, you can check the status four weeks after it was mailed.

The IRS says one of the most important steps taxpayers can take is to access their IRS Individual Online Account. IRS Individual Online Accounts are available 24/7 to view account information, make payments, manage communication preferences, and protect tax information.