The Biggest Tax Changes Coming This Year, And
How They Affect Your Refund
Every tax season brings a new set of questions, but one concern always rises to the top: what changed this year, and how will it impact my refund? With constant adjustments to credits, deductions, thresholds, and IRS rules, it’s easy to miss updates that could influence what you owe or what you get back.
At Postema Accounting Solutions, we make it a priority to stay ahead of these changes so our clients don’t have to. Below is a clear, plain-language overview of the most important updates for the upcoming tax season and what they mean for individuals and small businesses.
1. Standard Deduction Increases
The IRS adjusts the standard deduction nearly every year to account for inflation. For many taxpayers, this is the most significant factor affecting their return.
Higher deductions mean more of your income is shielded from taxes. It also means fewer households will itemize, which simplifies filing but can reduce the benefit of certain expenses like charitable contributions or mortgage interest.
Understanding how this shift applies to your filing status helps you estimate your refund more accurately before tax season begins.
2. Changes to Tax Brackets
While income tax rates remain the same, the income ranges for each bracket often shift. Even small adjustments can influence how much of your income is taxed at higher percentages.
For some, this means a slightly lower tax bill. For others, especially those who experienced income growth, it could mean more is taxed at a higher level.
A mid-year income change, job switch, or bonus may have moved you into a different position than last year. Reviewing this early can help avoid surprises.
3. Updated Credits and Deductions for Families
Credits like the Child Tax Credit, Earned Income Tax Credit, and education-related credits are subject to periodic updates.
Even small changes in qualification thresholds can affect your return. Parents should pay close attention to these adjustments, particularly if their income has changed or they welcomed a new dependent this year.
These credits can significantly impact your refund, so it’s worth reviewing them ahead of time.
4. Retirement Contribution Limits
Retirement account contribution limits often increase to help taxpayers keep pace with inflation.
Whether you're contributing to a 401(k), Traditional IRA, Roth IRA, or SEP plan, these changes can influence both your tax liability and your long-term savings strategy.
Business owners should pay special attention to updated SEP and SIMPLE plan limits, as these can affect both their personal and business tax outcomes.
5. Mileage, Business Deductions, and Self-Employment ChangesUpdated Credits and Deductions for Families
Self-employed taxpayers, gig workers, rental property owners, and small business operators often face the largest number of annual updates.
Mileage rates, depreciation rules, and qualified business income deductions can shift each year. These changes may affect:
Business travel and vehicle deductions
Section 179 expensing
Equipment purchases
Home office deductions
Multi-state filing requirements
Accurate tracking throughout the year and early planning can prevent missed deductions and ensure full compliance.
6. IRS Filing and Refund Timelines
The IRS continues to refine timelines for issuing refunds, processing returns, and addressing identity verification requirements.
While many returns process quickly, early filing remains the best way to avoid delays. Updated rules also impact returns with certain credits, which may experience longer processing times.
Knowing what to expect helps you plan ahead — especially if you rely on your refund.
What This Means for You
Tax changes may feel overwhelming, but they’re manageable with the right preparation. Most importantly, the impact of each change depends on your personal situation — income, family size, investments, business structure, and year-to-year financial shifts.
At Postema Accounting Solutions, our role is to help you understand how these adjustments apply to your return and what steps you can take to minimize what you owe or maximize what you receive.
Whether you’re an individual filer, a family, or a small business owner, reviewing these updates now puts you in the best position for a smooth and predictable tax season.
Ready to Plan for the New Tax Season?
If you want help navigating these changes, evaluating your records, or setting a strategy for the year ahead, our team is here to guide you every step of the way.
Postema Accounting Solutions
Trusted for more than 34 years. Serving Defiance, Northwest Ohio, and clients nationwide.
Schedule your tax appointment early to get ahead of the season.
Preparing for Your Tax Appointment: A Comprehensive Checklist of Required Documents and Information by Postema Accounting Solutions
Preparing taxes can be a confusing and frustrating process. But it doesn’t have to be! We are here to help make tax preparation as simple as possible.
Below you will find a list of all the required tax preparation items:
Required Tax Preparation Items:
Copy of last year’s tax return
Full legal name, social security #, and birthdates of all individuals represented on tax return
All W-2s
All 1099s (Miscellaneous income i.e. rental, non-employee income, etc.)
All 1098s (Interest statements, mortgage statements, etc.)
1098Ts for college students
Child Tax Credit Letters
Stimulus Letters
Preparing for Your Tax Appointment: A Comprehensive Checklist of Required Documents and Information by
Postema Accounting SolutionsWhat You Should Do Right Now to Prepare for Tax Season: A Practical Guide for 2024–2025 Filers
All 1098s (Interest statements, mortgage statements, etc.)
1098Ts for college students
Child Tax Credit Letters
Stimulus Letters
Postema Accounting Solutions is
here to meet your individual and
small business tax preparation as
well as your small business
accounting needs.
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2014 Baltimore Street
Defiance, OH 43512
Office Hours:
Monday — Friday
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Evenings and Weekends By Appointment
Postema Accounting Solutions is here to meet your individual and small business tax preparation as
well as your small business accounting needs.
Follow Us