Tax Refunds Expected to Jump This Year as New Deductions Take Effect

Tax season is officially underway, and many Americans could be in for larger refunds this year.

The Treasury Department estimates refunds will average about $1,000 more per household. The boost stems largely from timing: many filers never adjusted their withholdings after recent income tax breaks kicked in, meaning they've been overpaying throughout the year.

A new law raises the individual standard deduction by $750—and by $1,500 for married couples filing jointly. It also expands state and local tax deductions and introduces a new tax break for certain seniors. Details on eligibility for the senior provision were not specified.