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9 days ago
Millions of Americans Issued Warning About Extra $775 IRS Refund
Summary
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Thanks to several changes to the United States tax code this year, millions of Americans will be able to qualify for new deductions that did not previously exist, netting those millions of Americans who do qualify an extra deduction of $775 on average.
However, before you expect big things from what you expect to be a significantly larger tax refund, a few experts have some important warnings that taxpayers should consider before they bank on this extra cash.
Following some recent changes to the tax code under the One, Big, Beautiful Bill Act (OBBB), the Internal Revenue Service (IRS) has been indicating that some Americans will receive significantly larger tax refunds this tax season.
Treasury Secretary Scott Bessent, who also served as the acting director of the Internal Revenue Service (IRS), has described the expected refunds as “gigantic” and “very large” on separate occasions.
While these new tax deductions do not apply to everyone, data shows that millions of Americans are indeed taking advantage of the new tax breaks as the IRS says that four in 10 of the roughly 55 million tax returns filed so far have included at least one of the several new deductions – about 22 million filers so far.
Those who have been able to claim one of these new deductions have seen an extra $775 refund on their tax return on average.
While these new tax deductions will provide some tax relief for millions of Americans, it's worth noting that not everyone will qualify for these new deductions. In fact, data shows that most Americans will not be eligible for one of these new deductions.
During a recent interview with Newsweek, Alex Beene, a financial literacy instructor for the University of Tennessee at Martin, issued an important warning that applies to millions of Americans, urging taxpayers to "keep realistic expectations" as they file their taxes.
“Some of the new breaks and credits don't benefit every taxpayer, and those who have yet to file need to keep realistic expectations,” he said. “Ultimately, those who do receive the larger refunds will get a well-needed increase to help with their expenses.”
Even those who do qualify for these deductions are unlikely to see "meaningful household budget relief" as a result of continued inflation, warned Drew Powers, founder of Illinois-based Powers Financial Group.
“While a bigger refund is nice, most Americans will find any additional amounts have already been negated by inflation,” Powers told Newsweek. “Inflation has slowed, but prices are not coming down. Seniors, tipped workers, and some who are paid overtime may enjoy an uptick in their refund, but it is not going to provide meaningful household budget relief.”
So while millions of Americans will qualify for one or more of these new deductions, which will lead to an extra $775 deduction on average, it's important to temper your expectations about what this could mean for your finances.
This story was originally published by Men's Journal on Mar 8, 2026, where it first appeared in the News section. Add Men's Journal as a Preferred Source by clicking here.
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Thanks to several changes to the United States tax code this year, millions of Americans will be able to qualify for new deductions that did not previously exist, netting those millions of Americans who do qualify an extra deduction of $775 on average.
However, before you expect big things from what you expect to be a significantly larger tax refund, a few experts have some important warnings that taxpayers should consider before they bank on this extra cash.
Following some recent changes to the tax code under the One, Big, Beautiful Bill Act (OBBB), the Internal Revenue Service (IRS) has been indicating that some Americans will receive significantly larger tax refunds this tax season.
Treasury Secretary Scott Bessent, who also served as the acting director of the Internal Revenue Service (IRS), has described the expected refunds as “gigantic” and “very large” on separate occasions.
While these new tax deductions do not apply to everyone, data shows that millions of Americans are indeed taking advantage of the new tax breaks as the IRS says that four in 10 of the roughly 55 million tax returns filed so far have included at least one of the several new deductions – about 22 million filers so far.
Those who have been able to claim one of these new deductions have seen an extra $775 refund on their tax return on average.
While these new tax deductions will provide some tax relief for millions of Americans, it's worth noting that not everyone will qualify for these new deductions. In fact, data shows that most Americans will not be eligible for one of these new deductions.
During a recent interview with Newsweek, Alex Beene, a financial literacy instructor for the University of Tennessee at Martin, issued an important warning that applies to millions of Americans, urging taxpayers to "keep realistic expectations" as they file their taxes.
“Some of the new breaks and credits don't benefit every taxpayer, and those who have yet to file need to keep realistic expectations,” he said. “Ultimately, those who do receive the larger refunds will get a well-needed increase to help with their expenses.”
Even those who do qualify for these deductions are unlikely to see "meaningful household budget relief" as a result of continued inflation, warned Drew Powers, founder of Illinois-based Powers Financial Group.
“While a bigger refund is nice, most Americans will find any additional amounts have already been negated by inflation,” Powers told Newsweek. “Inflation has slowed, but prices are not coming down. Seniors, tipped workers, and some who are paid overtime may enjoy an uptick in their refund, but it is not going to provide meaningful household budget relief.”
So while millions of Americans will qualify for one or more of these new deductions, which will lead to an extra $775 deduction on average, it's important to temper your expectations about what this could mean for your finances.
This story was originally published by Men's Journal on Mar 8, 2026, where it first appeared in the News section. Add Men's Journal as a Preferred Source by clicking here.
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AI Description
The article discusses changes to the U.S. tax code that allow millions of Americans to qualify for new deductions, averaging an extra $775. However, experts warn taxpayers to be cautious about expecting larger refunds.