40,000 Philadelphians miss some tax refund money each year. Here's how to maximize your payout from the IRS.
Tax experts say in 2026, there are more opportunities than ever to boost your refund — but only if you know which deductions and credits you're eligible to claim.
The IRS says the average refund is now approaching $4,000, but major tax law changes are creating confusion for many filers. That confusion could cost taxpayers hundreds or even thousands of dollars.
"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, told CBS News Philadelphia. "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."
New and expanded deductions
Several deductions are new or significantly expanded for the 2025 tax season:
- Tipped workers can now deduct up to $25,000 in qualifying earned tips.
- Many employees can deduct up to $12,500 in overtime pay.
- Seniors 65 and older qualify for an additional $6,000 deduction.
When it comes to credits, Steber said many taxpayers mistakenly believe they'll be applied automatically. That includes two of the most valuable ones: the Earned Income Tax Credit and the Child Tax Credit.
"Some people don't have the information and figure, well, I'll just leave it off. It can't be that valuable. And it is that valuable," Steber said. "The IRS will not just flip around and send you a bigger check because you missed it."
Many eligible filers still miss out
Steber said lower-income taxpayers may qualify for up to a dozen different credits. That includes thousands of households in the Philadelphia region.
City officials estimate roughly 40,000 Philadelphians leave money unclaimed each year.
Key filing deadlines
Taxpayers have until April 15 to file their 2025 returns. The IRS says e‑filing remains the fastest way to receive a refund, typically within about three weeks for those who choose direct deposit.
CBS News Philadelphia's In Your Corner continues to provide guidance throughout tax season to help you avoid mistakes and keep more of what you've earned.
Looking for help with a consumer issue? Click here to submit your complaint to In Your Corner.
