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How to Get a Bigger Tax Refund

Reviewed by Mark Blaylock, CPA October 2026

Short answer

Your tax refund is the tax you paid through withholding, estimated payments made during the year, and refundable credits on your tax return, minus the tax you actually owe. To get a bigger refund, you can pay more during the year by giving your employer a new Form W-4 that tells your employer to withhold more from your paycheck. And you can make (or increase) estimated payments made quarterly using Form 1040-ES Or you can lower your actual tax with credits and deductions on your tax return, including retirement contributions. Pre-tax 401(k) contributions don’t usually grow a refund. Payroll withholding is calculated on the reduced wages, so tax and withholding both drop and the benefit shows up mostly in take-home pay.

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How Your Tax Refund Is Calculated

Many taxpayers love to get a big refund! Sometimes they want to avoid owing taxes when they file their return, so they pay extra throughout the year. Some simply like having a nice check to spend on a vacation or other personal items. Whatever the reason, it’s important to understand that a larger refund generally means you’re paying the IRS more throughout the year, sort of like giving Uncle Sam a short-term loan.

Withholding is the federal income tax your employer withholds from each paycheck and sends to the IRS. When you file your tax return, you compare what was withheld with the tax you owe. According to the IRS 2026 Form W-4, withholding too much generally means a refund, while withholding too little generally means you’ll owe and may face a penalty.

Here’s an example with made-up numbers. Say your employer withheld $5,000 in 2026 and your actual tax is $4,200. You’d get an $800 refund when you file in 2027.

So you can grow your refund two ways: raise the amount withheld or lower the tax you owe.

Adjust Your Withholding With a New Form W-4

To change your withholding, submit a new Form W-4 to your employer, according to the IRS tax withholding page. The IRS Form W-4 FAQs say the simplest way to withhold more is to enter an extra amount per paycheck in Step 4(c).

Before you change anything, try the IRS Tax Withholding Estimator. It shows how your withholding affects your paycheck and your refund or tax due. You can also download a completed W-4.

According to the IRS tax withholding page, if you withhold too much, you won’t have use of that money until you get your refund. The IRS Form W-4 FAQs note you don’t earn interest on the amount you overpay.

Claim Refundable Tax Credits

A tax credit cuts your tax dollar for dollar. A refundable tax credit goes further: if it is larger than your tax liability, you get the difference back. The IRS Form W-4 FAQs note that you may get a refund even if no income tax is withheld if you qualify for refundable credits.

Credit2026 maximumRefundable?
Earned Income Tax Credit (EITC), 3 or more children$8,231Yes
EITC, 2 children$7,316Yes
EITC, 1 child$4,427Yes
EITC, no children$664Yes
Child Tax Credit, per qualifying child under 17$2,200Up to $1,700 (Additional Child Tax Credit)
American Opportunity Tax Credit, for college costs$2,500Up to $1,000

EITC amounts are from IRS Revenue Procedure 2025-32. The IRS Child Tax Credit page lists Child Tax Credit amounts. See the IRS EITC page for eligibility.

Lower Your Taxable Income With Deductions

A deduction reduces your taxable income, the amount your tax is figured on. That makes it worth less than a credit of the same amount. For example, a $1,000 deduction saves $220 in the 22% tax bracket.

Standard vs. Itemized Deductions

The standard deduction is a flat amount based on your filing status. Itemizing means adding up specific deductible expenses, so it only makes sense if they total more than your standard deduction. The IRS 2026 inflation adjustments set these standard amounts:

Filing status2026 standard deduction
Single or married filing separately$16,100
Married filing jointly$32,200
Head of household$24,150

Retirement Contributions

Traditional (pre-tax) 401(k) or IRA contributions can lower your taxable income. They also reduce your adjusted gross income (AGI), which is your total income minus certain adjustments.

Traditional IRA contributions made outside payroll are the ones that more directly increase a refund. Keep in mind that higher withholding from extra deductions means smaller paychecks.

For 2026, the IRS 401(k) and IRA limits are $24,500 for a 401(k) and $7,500 for an IRA. If you’re 50 or older, you can add $8,000 to a 401 (k) and $1,100 to an IRA. Whether you can deduct a traditional IRA contribution depends on your income and whether you have a workplace plan.

Lower-income retirement savers can also use the Saver’s Credit. This can be ideal for those in early career stages with lower earnings.

New 2026 Deductions

New 2026 deductions from the 2025 tax law that non-itemizers can claim: tips, overtime, the senior deduction, and car-loan interest. They’re highly relevant to “lower your taxable income.” Verify the current details and phase-outs on IRS.gov first.

Sources

What is a tax return? What is a refundable tax credit? What's the difference between tax credits and deductions? How does the standard deduction work? What is a tax withholding allowance? How long does it take to get a tax refund?