Could Missourians see bigger tax refunds this year?
Stacy Engle with the IRS told Missourinet that projections point to higher refunds, because of increased standard deductions under the One Big Beautiful Bill Act passed in July.
“When that change happened, most people did not make any changes to their withholding, and most employers did not adjust the withholding for the change,” said Engle. “So that is going to increase the amount of standard deduction people get, which will increase the amount of overpayment they made based on withholding.”
Starting this year, small businesses and farmers in Missouri will see tax changes under the One Big Beautiful Bill.
Engle told Missourinet that the standard mileage rate is increasing for cars, vans, and panel trucks — including electric and hybrid vehicles.
“Anyone that’s in business as a small business, self-employed contractor or a farmer will get the increased mileage rate,” said Engle. “And it has went up 2 1/2 cents the highest mileage rate that’s been on record of 72 point 5 cents per mile.”
Engle said another change under the One Big Beautiful Bill allows workers who earned overtime above time-and-a-half to deduct the extra half-rate — up to $12,500.
“Until the end of this year, most employers have been doing withholding based on what you make rather than excluding the 12,500 in your overtime,” said Engle. “So that’s going to hopefully increase the amount someone would owe in tax or increase their refund.”
Engle says for details on the overtime tax break and other changes, head to IRS.gov.
Experts say this could be the biggest tax refund season in U.S. history, with Treasury Secretary Scott Bessent projecting refunds between one thousand and two thousand dollars.
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