How to Get a Bigger Tax Refund in 2027

Want a bigger tax refund when you file in 2027? Here are 5 ways to get one, and most of them have to happen before December 31, 2026.

The return you file in early 2027 covers tax year 2026. Every figure on this page is for tax year 2026 and comes from the IRS.

How big is a typical refund? The average was $3,276 as of May 8, 2026, up from $2,939 a year earlier. Here's how to push yours higher.

1. Decide if the Standard Deduction or Itemizing Gets You More

The standard deduction is a fixed dollar amount that reduces the income you're taxed on. It depends on your filing status. For tax year 2026:

• Single or married filing separately: $16,100
• Head of household: $24,150
• Married filing jointly: $32,200

You get it even if you have no expenses to write off, which is why it's the easy choice.

Itemized deductions aren't a fixed amount. They're the total of certain expenses you paid during the year, like charity donations, large out-of-pocket medical or dental bills, mortgage interest and real estate taxes.

So which one do you take?

Add up your itemized deductions. If they come to more than the standard deduction for your filing status, it's worth the extra work to itemize. If they don't, take the standard deduction and move on.

2. Contribute More Towards Retirement

One of the best and easiest ways to cut your tax bill is to put more into a retirement account like your 401(k) or IRA. Money you put into a traditional 401(k) comes out of your paycheck before income tax.

The 401(k) contribution limit for 2026 is $24,500, up from $23,500 for 2025. If you're 50 or older you can add another $8,000, and if you're 60 to 63 the extra amount is $11,250.

The IRA limit for 2026 is $7,500, plus $1,100 more if you're 50 or older. Between the two accounts, that's a lot of income you can keep away from this year's tax bill, and it's still your money when you retire. Planning to stop early? Read how to semi-retire.

Does your employer match? Take all of it.

There's also the Saver's Credit for lower incomes. For 2026 you can't claim it if your income is over $40,250 as a single filer, $60,375 as a head of household or $80,500 if you're married filing jointly.

3. Donate to Charity and Claim Available Deductions

Here's something new for 2026. Until now you generally had to itemize to deduct a donation. Not anymore.

Starting with tax year 2026, if you take the standard deduction you can still deduct up to $1,000 in cash gifts to charity, or up to $2,000 if you're married filing jointly.

It has to be cash.

Clothing, household stuff and stock don't count for this one, and neither do gifts to donor-advised funds.

If you itemize, you can still deduct both cash and goods you give away. Either way, keep your receipts, and make sure the charity is tax-exempt with the IRS. The IRS has a free Tax Exempt Organization Search tool where you can look it up.

4. Contribute Towards Your Kid's College Fund

A 529 plan is a great way to save for your kids' education and get a tax break doing it. It's one part of graduating college debt free.

Contributions to a 529 aren't deductible on your federal return. But the earnings pile up tax free while they're in the account, and you don't pay tax when the money comes out for qualified education expenses. Some states give you a deduction or credit for contributing too, so check your state's plan.

You can also use a 529 for private elementary or high school. Starting in 2026, that limit is $20,000 per year, up from $10,000.

5. Review Your Flexible Spending Account

If you have a health FSA through your employer, pre-tax money comes out of your paycheck for medical expenses your insurance doesn't cover. Those contributions lower your taxable income.

For 2026, you can put in up to $3,400.

Still have money left in yours? Use it. If your plan allows a carryover, the most you can roll into next year is $680. Depending on your plan, you may lose the rest, so book the doctor's appointments you've been putting off.

What to Do With Your Tax Refund

Before you blow that refund on a vacation, think about how you can turn it into something more. If it's around a grand, here are ways to invest $1,000. Remember, this is your hard-earned money.

Pay off Debt

Your tax refund might be the largest lump sum you get all year that isn't already spoken for. It's a great chance to pay down debt that's costing you interest.

Start with your highest interest rate debt first (this tends to be credit cards and personal loans) and work your way down.

Start a Rainy-Day Fund

According to the Federal Reserve's latest household survey, 63% of adults said they'd cover a $400 emergency expense with cash or its equivalent. That leaves more than a third who wouldn't.

Don't be in that group. Putting your refund straight into savings is a good idea, because unexpected expenses can come at any time. A high-yield savings account is the place for it.

Make Energy Saving Fixes at Home

Simple, affordable fixes like energy-efficient lightbulbs, new weather-stripping or fresh air filters for your HVAC system can lower your heating and cooling bills. So can a more efficient showerhead.

Do it for the lower bills, not for a tax break. The federal Energy Efficient Home Improvement Credit doesn't apply to anything put in service after December 31, 2025.

Do Preventative Maintenance on Your Car

Most of us only see a mechanic when something breaks. That gets expensive fast once you add towing and shop charges wherever you happen to break down.

Preventative maintenance lets a mechanic look your vehicle over before something fails, and a tune-up can help your car run more efficiently.

Invest in Your Education

Is there a class or professional certification that could advance your career or help you make money on the side? In the end, you are your greatest money-making asset.

Invest in a Startup

It could be your own company or one started by a friend or coworker. If you believe in the idea, you can put money in for a piece of equity, which is an ownership stake.

Get the exact terms in writing.

And understand that you could lose all of the money you put in.

Donate to a Charity

If you're in the right financial position, giving is a great use of the money. Pick a charity you feel strongly about and research it first. Your donation may be tax-deductible too, which helps on next year's return.

Bottom Line

A bigger refund in 2027 comes from what you do in 2026: max out your retirement contributions, use your FSA, give to charity and pick the right deduction. Then set a goal for the money now, so you have a plan when it arrives. You'll find help with that in the smart money guides.