Large Tax Refunds Expected, But Individual Results May Vary
ROCHESTER, N.Y. — Recently, U.S. Treasury Secretary Scott Bessent has been reminding the public about the potential for “very large refunds” this year, thanks to the One, Big, Beautiful Bill Act that was passed on July 4. This legislation brings several federal tax exemptions, including those on Social Security, overtime, and tips.
However, there’s uncertainty about whether everyone will actually receive a sizable refund.
“Given that each taxpayer’s situation is unique, it’s tough to predict what individuals can expect,” said Chairman George Conboy from Brighton Securities.
As an example, Conboy highlighted that seniors, especially those not taxed on Social Security, could see an additional deduction amounting to about $6,000 per person over 65—potentially $12,000 for couples, depending on their tax situation.
He also noted that for homeowners in New York, the cap for property tax deductions has increased from $10,000 to $40,000. Yet, once income surpasses a certain threshold, this deduction may begin to phase out. “For most homeowners, however, property taxes can be entirely deducted,” he added. It’s seen as a significant relief for average homeowners.
If taxpayers don’t owe federal taxes on tips, they have the ability to deduct up to $25,000, and there’s no federal tax for overtime up to $12,500. Details regarding state taxes on these are still being worked out in Albany.
Some individuals, like Christine Murray, remain skeptical. “I think it’s going to be a huge mess,” she said, expressing doubt about the clarity of this year’s refund process. “There’s no explanation. I don’t understand how I’m compensated for six months of overtime.”
Conboy advised those who may owe taxes this year to take action for the following year by adjusting their withholdings. “If you ask your employer to withhold a bit more, you might be able to manage your debt better—or at least not pay as much,” he mentioned.
On the flip side, if a large refund is anticipated, Conboy suggested reconsidering the amount withheld to avoid letting the government hold your money for a whole year. “Your refund may decrease, but you would have access to that money throughout the year,” he emphasized.
