VIDEO TRANSCRIPT: Higher refunds, new deductions and what filers need to know about 2025 taxes.
Arwen Parmelee: According to the Tax Foundation, the IRS has already sent out more than $200 billion in refunds this filing season. That’s nearly 23 billion more than at this same point.
Lisa Greene-Lewis: Withholding tables were not adjusted for tax year 2025, and so there were a lot of deductions and credits that passed that they impact a lot of different people. So whether you’re a parent, the child tax credit that was increased to $2,200 from $2,000 for each child under 17, there were some new deductions, the deduction for qualified tips. So if you’re a beautician, an esthetician or a ride share driver, you can deduct your tips up to $25,000.
Parmelee: for college students juggling internships and side businesses tax season can mean navigating multiple states and a whole lot of paperwork.
Ronan Hussar: I had an internship this summer, so I got paid for that. And then I also have an LLC which is registered in the state of New York. So I filed taxes in my home state of Illinois, New York, and then the federal once I clicked send and submit, like any good homework assignment, I was relieved.
Parmelee: That sense of relief is something a lot of first time filers can relate to. But if you haven’t filed yet tonight, is it free? Filing is available at irs.gov and if you need more time, you can still request an extension before midnight tonight.
SYRACUSE, N.Y. (NCC News) — The federal tax filing deadline was midnight April 15, and for millions of Americans filing this year, the refund may be bigger than expected.
According to the Tax Foundation, the IRS sent out more than $202 billion in refunds this filing season as of late March, nearly $23 billion more than at the same point last year. The average refund stood at $3,571, up nearly 11% from $3,221 at this time in 2025.
Tax experts said the surge came down to timing. Withholding tables, the formula employers use to determine how much to take out of each paycheck for taxes were not updated to reflect new tax cuts that took effect for the 2025 tax year. That left many workers paying more than they owed throughout the year, resulting in larger refunds when they filed.
Lisa Greene-Lewis, a tax expert at TurboTax, said the changes affected a wide range of filers.
“Withholding tables were not adjusted for tax year 2025, and so there were a lot of deductions and credits that passed that they impact a lot of different people,” Greene-Lewis said. “So whether you’re a parent, the child tax credit that was increased to $2,200 from $2,000 for each child under 17, there were some new deductions, the deduction for qualified tips. So if you’re a beautician, an esthetician or a ride share driver, you can deduct your tips up to $25,000.”
The child tax credit increase and the new tip deduction were among several provisions that applied broadly across income levels and industries, Greene-Lewis said. For parents with multiple children, the credit increase alone could mean hundreds of extra dollars back this year.
For students and first-time filers, the process can quickly become more complicated than expected.
Ronan Hussar, a college student who filed taxes for the first time this year, said the process was more involved than he anticipated. Hussar had to file in three separate jurisdictions: his home state of Illinois, New York, where his LLC is registered, and federally, after earning income from a summer internship.
“I had an internship this summer, so I got paid for that. And then I also have an LLC which is registered in the state of New York. So I filed taxes in my home state of Illinois, New York, and then the federal,” Hussar said. “Once I clicked send and submit, like any good homework assignment, I was relieved.”
Hussar’s situation is common among college students who run small businesses or take on paid internships while still in school. Filing across multiple states can mean separate forms, separate deadlines and separate rules for each state.
For those who missed April 15 deadline, it is not too late to file. Late filers may face penalties and interest on any taxes owed, but free filing remains available at IRS.gov for taxpayers.