When you have income withheld from your paychecks for income taxes, you may be entitled to get some of that back when you file your tax return. The amount you get back is called your tax refund. Your tax refund can be bigger or smaller depending on how accurately you fill out your taxes. We’ll help you understand your tax refund and ensure you’re getting every dollar you deserve.
What determines your tax refund?
When it comes to tax refunds, several factors play a role in determining why you get money back when you file your tax return. The most important factor is your total income. Generally, the less you earn, the more you can potentially get back as a refund. This is because the U.S. has a progressive tax rate system that decreases the tax rate for taxpayers with less taxable income.
Deductions and credits are the other significant contributors to your tax refund. Your standard or itemized deductions reduce your taxable income, which can lead to a larger refund. Tax credits like those for education or childcare directly reduce your tax liability and can result in a more substantial refund.
The good news is you can influence the amount of your refund with some planning. Here are some specific steps you can take to better understand how your tax refund is calculated, as well as strategies for how to get the most back on your tax return.
1. Choose the right filing status
The filing status you choose determines the rate at which your income is taxed and can impact the size of important tax deductions, like the standard deduction. Each filing status not only determines your standard deduction but also influences eligibility for various credits and deductions. Your filing status will be one of these:
- Single – not married, divorced, or legally separated according to state law
- Married filing jointly – married couples who combine their income, exemptions, and deductions on one tax return
- Married filing separately – married couples who opt to file their taxes separately, dividing their income, exemptions, and deductions
- Head of household – unmarried individuals who pay more than half the cost of keeping up a home for themselves and a qualifying person, like a child or dependent parent
- Qualifying widow(er) with dependent child – individuals can use this status for two years following the year their spouse died
If you’re married (including if you just got married this year), then you will have to file as married, but you can choose to file jointly or separately. If you’ve never been married, you’ll probably file as single. But, if you have dependents, you might qualify for the head of household status.
2. Consider itemizing if it makes sense
Deductions significantly impact your total tax bill because they are subtracted from your Adjusted Gross Income (AGI) to determine your taxable income. Essentially, deductions are applied before calculating the amount of your income that is subject to tax.
When you file your taxes, there are two primary deductions you can choose from to reduce your taxable income: itemizing deductions or taking the standard deduction.
Purchasing a home, incurring considerable medical expenses, making substantial charitable donations, or buying a new car could significantly impact your tax situation. These life events might make you eligible for major tax deductions. However, to capitalize on these below-the-line deductions, you will need to itemize your deductions on your tax return instead of taking the standard deduction.
You may choose to itemize if the total of your deductible expenses is greater than the standard deduction amount for your filing status. For 2024, the standard deduction amounts are:
- Single — $15,750
- Head of household — $23,625
- Married filing jointly or qualifying surviving spouse — $31,500
- Married filing separately — $15,750
If your eligible itemized expenses exceed the standard deduction for your filing status, itemizing your deductions could lead to a larger refund or a lower tax bill. However, if your expenses are less than the standard deduction or the difference is minimal, the ease of claiming the standard deduction may be more appealing.
Note: TaxSlayer will compare your options and help you decide if the standard deduction is right for you.
3. Claim all available tax credits
A tax credit is an amount of money that you can apply directly to your tax bill, so you owe less. Credits can be refundable, partially refundable, or non-refundable. Refundable credit amounts can be added to your tax refund if you don’t owe taxes.
Common credits include:
- Earned Income Tax Credit — A refundable tax credit designed to help low- to moderate-income individuals and families get a tax break, which varies based on income and the number of qualifying children.
- Child and Dependent Care Credit — This is a non-refundable tax credit for taxpayers who incur expenses for caring for children under 13 or disabled dependents while working or looking for work.
- Child Tax Credit — This partially refundable tax credit helps families offset the cost of raising children. The amount is based on the number of qualifying children.
- Saver’s Credit — A non-refundable tax credit for low to moderate-income taxpayers who contribute to eligible retirement accounts.
- Adoption Credit — A non-refundable tax credit for qualified adoption expenses paid to adopt an eligible child, aimed at easing the financial burden of adoption.
- Credit for the elderly/disabled — A non-refundable tax credit available to taxpayers aged 65 or older or permanently disabled.
You don’t have to know about all the credits that you can claim, but you should carefully report all your income and expenses. This is because all of TaxSlayer’s products, including the Simply Free package, feature a deduction/credit finder.
When you file with TaxSlayer, you don’t have to necessarily know about all of the tax breaks available to you. As long as you accurately report your information, we will find the credits and deductions you qualify for to guarantee your maximum refund.
H2: 4. Remember to report income from other job(s) and claim any business expenses
- Slight change to the H2
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4. Remember to report income from other job(s) and claim any business expenses
If you earn more than $600 for doing work – even if it’s just a side gig, you’ll need to report that self-employed income. Yes, this could mean you’ll need to pay self-employment taxes during the year. The good news is that you’re able to offset this income by claiming business expenses. This includes a variety of deductions for new businesses. Consider reporting the following expenses related to your work:
- Home office
- Mileage
- Marketing and advertising
- Supplies
- Equipment
- Software
- Computer/phone
Contract workers, freelancers, or people working with rideshare or delivery services might not view themselves as self-employed. However, the IRS considers this self-employed income.
With TaxSlayer Self-Employed, you’ll have a 1099 tax expert in your corner to answer your questions.
5. Make contributions to tax-deferred accounts
An easy way to boost your tax refund is by putting money into tax-deferred accounts like retirement plans, Health Savings Accounts (HSAs), and 529 education savings plans. These accounts let you set aside money for future needs while lowering your taxable income today — which can lead to a bigger refund when you file.
The contributions you make are above-the-line deductions, meaning they reduce your income before you even get to the itemized or standard deductions. Consider these tax-deferred accounts to save for future expenses and potentially increase your tax refund.
Health Savings Accounts (HSAs)
HSAs are great for those with high-deductible health plans. They offer multiple tax benefits.
- Contribution limits for 2025:
- Up to $4,300 for individuals
- Up to $8,550 for families
- Contributions are tax-deductible and reduce your taxable income.
- Money grows tax-free and can be used for qualified medical expenses anytime.
529 Education Savings Plans
529 plans help families save for education costs, although contributions aren’t deductible on your federal return, many states offer deductions or credits — some up to $10,000 or more per year. The One Big Beautiful Bill Act expanded 529 plans by:
- Increasing K–12 withdrawal limit from $10,000 to $20,000 per year starting in 2026.
- Expanding qualified expenses to include tutoring, books, online materials, and more.
- Allowing rollovers of up to $35,000 into a qualified Roth IRA.
Traditional Individual Retirement Accounts (IRAs)
IRAs help you save for retirement while reducing your taxable income.
- For 2025, you can contribute up to $7,000, or $8,000 if you’re age 50 or older
- Contributions are usually tax-deductible.
- Lower taxable income means a smaller tax bill and potentially a bigger refund.
Contributions to these tax-deferred accounts are a dollar-for-dollar deduction on your federal and state returns, reducing your taxable income. That’s why they can have a big impact on your refund.
6. Compare with last year’s tax return
When filing your tax return, you should always take the time to ensure nothing was missed. If your tax situation this year looks a lot like it did last year, your refund could be relatively the same. You can use your prior year tax return as a benchmark to compare and double-check that you haven’t missed any credits or deductions that you’ve previously claimed. Claiming every deduction and credit that you qualify for helps to maximize your refund.
Note: TaxSlayer makes it easy to upload a prior year return. The data gets imported from your forms, so you won’t have to re-enter information that hasn’t changed.
7. Estimate your tax refund before you file
Did you know you can calculate your estimated tax refund even before the IRS opens? If you’ve received your W-2 (or even if you haven’t), you can enter your income and expense information into TaxSlayer’s Refund Calculator. The tool is entirely free to use, and it gives you a good idea of how much you can expect to receive (or owe) once you file your tax return.
Our refund calculator is updated year after year for any tax law changes. If your estimated refund is less than expected, consider checking your withholding using Form W-4.
