Statewide Iowa (RI) — Most Iowans likely haven’t started filling out their tax forms yet, but they might be more eager to do so this year.
Stacy Engle, a spokeswoman for the Internal Revenue Service, says projections point to higher refunds ahead, thanks to increased standard deductions under the so-called Big Beautiful Bill that passed Congress last July.
It could be the biggest tax refund season in U.S. history, with Treasury Secretary Scott Bessent projecting refunds averaging between $1,000 and $2,000.
Iowa’s small businesses and farmers will also see tax changes, as Engle says the standard mileage rate is rising for cars, vans, and panel trucks, including electric and hybrid vehicles.
Engle notes this change won’t affect the 2025 tax return, as it kicks in for the 2026 tax year, giving businesses and farmers time to plan ahead.
Engle says another change allows workers who earned overtime above time-and-a-half to deduct the extra half-rate up to $12,500.
Visit the IRS Website for more information on the changes.
KIWA Staff Photo
