The Tax Filing Deadline is Days Away. Here’s How New Laws Could Boost Your Refund

INVESTOPEDIA.COMApr 10, 6:19 PM UTC

Key insights

  • The tax filing deadline approaches with new tax laws (OBBBA) potentially boosting refunds. The average refund is already up 11.1% year-over-year. Larger refunds could lead to increased consumer spending, providing a slight tailwind for US equities.
The Tax Filing Deadline is Days Away. Here’s How New Laws Could Boost Your Refund

The 2026 filing season closes Wednesday, and it will be most filers' first encounter with the new deductions under the One Big Beautiful Bill Act.

You'll need to file your 2025 taxes or request a six-month filing extension by April 15. An extension gives you more time to file, but it doesn't extend your tax payment deadlines.

The IRS discontinued Direct File, its free filing program, this year. However, taxpayers earning $89,000 or less can still use IRS Free File, and anyone can still use the IRS Free Fillable Forms.

This is the first filing season under OBBBA, the largest rewrite of the tax code since the 2017 Tax Cuts and Jobs Act. As tax season winds down, many Americans will see for the first time what the legislation's much-debated provisions mean for their personal finances.

Here are the most important things to know before the deadline.

OBBBA created several new tax breaks that might boost your refund:

OBBBA also expanded existing tax breaks, such as first-year depreciation, SALT and charitable contribution deductions.

The IRS reports that about one in five eligible taxpayers fail to claim the Earned Income Tax Credit. Open to parents and workers ages 25 to 65, it's a refundable tax credit, meaning taxpayers can get a refund even if they don't owe federal taxes.

Under OBBBA, most filers should owe less or receive a bigger refund than under previous legislation.

The Tax Foundation, a nonpartisan think tank, estimates refunds will run almost $750 higher than last year. As of March 27, the average refund was $3,521, up 11.1% from a year earlier, according to the most recent IRS data.

The IRS began phasing out paper checks this season and has been more insistent on having filers provide their direct deposit information. Taxpayers who request a paper check or don't provide their bank details should expect their refund to be delayed by several weeks.

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