Mar 18, 2026
For many Americans, tax season delivers the biggest single financial boost of the year. But this year’s filing season may also be one of the most confusing in decades — and that confusion could cause millions of taxpayers to miss out on money they’re entitled to claim.
The IRS says the average federal tax refund now tops $3,800 (1), offering a meaningful windfall for households coping with rising costs. Yet, tax professionals say a wave of new rules, deductions and credit changes mean some taxpayers could leave hundreds — or even thousands — of dollars unclaimed simply because they don’t realize what they qualify for.
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“There are more changes to the tax law than I’ve seen in 40 years, all at once,” Mark Steber, chief tax officer for Jackson Hewitt Tax Service, recently told CBS News (2).
The result is a filing season filled with opportunity but also risk for taxpayers who overlook key deductions and credits.
New deductions are adding to the confusion
Several new or expanded deductions, part of the One Big Beautiful Bill Act (3), are available this filing season, particularly for workers and older Americans.
For example, tipped workers may now deduct up to $25,000 in qualifying tips. Employees who earn overtime may qualify to deduct up to $12,500 in overtime pay. And taxpayers aged 65 and older may be eligible for an additional $6,000 deduction designed to provide added tax relief for seniors. Meanwhile, individuals may also deduct up to $10,000 in interest paid on a qualifying car loan.
While these deductions could significantly reduce taxable income, many filers may be unaware of their existence.
Part of the challenge is that the tax code evolves constantly. Each year, the IRS adjusts brackets, credits and deduction rules to account for inflation, policy changes and legislation passed in the previous year.
This year’s combination of adjustments has created a particularly complex environment for taxpayers trying to navigate their returns.
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"We're seeing a great deal of misunderstanding on the new tips deduction, the overtime deduction, even the car interest deduction, and certainly the senior deduction,” Steber told CBS.
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Many taxpayers miss credits
Even more valuable than deductions are tax credits, which reduce the amount of tax owed and increase refunds.
Two of the most important credits are the Earned Income Tax Credit (EITC) and the Child Tax Credit: both help working families, particularly those with lower or moderate incomes.
Yet, tax professionals say these credits are often overlooked.
"Some people don't have the information and figure, well, I'll just leave it off. It can't be that valuable.” Steber said. “And it is that valuable.”
The Earned Income Tax Credit alone can be worth thousands of dollars depending on family size and income. But according to IRS estimates (4), millions of eligible taxpayers fail to claim it each year.
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Unlike some benefits, the IRS does not automatically apply missed credits after a return is filed. If taxpayers don’t claim them, they simply don’t receive them.
That’s one reason financial experts say taxpayers should review eligibility carefully before submitting their returns.
Taxpayers may qualify for numerous tax credits (5) tied to factors such as income, children, education expenses or retirement savings contributions.
But these programs often have eligibility requirements and documentation rules that can discourage filers from claiming them.
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As a result, many households may unknowingly leave significant amounts of money behind.
What taxpayers should do before filing
With the filing deadline approaching, a good tip is to take extra time to review available credits and deductions before submitting a return.
That’s especially important for taxpayers with children, education expenses or lower-to-moderate incomes — groups that tend to qualify for some of the most valuable credits.
E-filing with direct deposit also remains the fastest way to receive a refund, according to the IRS. Most electronically filed returns that choose direct deposit receive their refunds within about three weeks (6).
Ultimately, the biggest risk this tax season may not be paying too much, but failing to claim money you’re entitled to receive.
In a year packed with tax rule changes, experts say a careful review of available credits and deductions could make a significant difference in the size of your refund.
Article sources
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
IRS (1), (3), (4), (5), (6); CBS News (2)
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Monique Danao is a highly experienced journalist, editor and copywriter with 8 years of expertise in finance and technology. Her work has been featured in leading publications such as Forbes, Decential, 99Designs, Fast Capital 360, Social Media Today and the South China Morning Post.
