Tax & Accounting News

TaxBuzz Top 5 - Tax Refunds Lower Than Last Year, Trump's 'Gold Card' Visa's Hidden Tax Breaks & More

by
Rebekah Barton
on
2/28/2025
TaxBuzz Top 5 - Tax Refunds Lower Than Last Year, Trump's 'Gold Card' Visa's Hidden Tax Breaks & More

Each Friday, TaxBuzz brings you the top five tax and accounting headlines you need to know from the workweek. We know life can get busy and you don't always have time to scroll through your news feed to stay informed.

We weed through all of the week's stories to showcase the most important updates in the tax and accounting world.

1. Early Tax Refunds Down 32% Compared to Last Year, IRS Data Shows

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Credit: Natalia Bratslavsky/Getty Images

With tax season in full swing, early IRS data reveals that the average tax refund is significantly smaller than last year. As of February 14, the average refund stands at $2,169—about 32% lower than the $3,207 average refund issued at the same time in 2024.

Experts caution that this doesn’t necessarily mean all taxpayers will see reduced refunds. Early filers tend to be low- and middle-income workers with simpler tax returns, while those with more complex financial situations typically file closer to the April 15 deadline. “Many employees, all they have is a W2—they have smaller refunds or smaller amounts to pay because they have withholding through their jobs,” Keith Hall, CEO of the National Association for the Self-Employed, told CBS MoneyWatch.

So far, about 33 million tax returns have been submitted, marking a 5% decline from the same period last year. The IRS expects the numbers to “level out in future weeks as the April filing deadline approaches.”

Taxpayers filing electronically can expect refunds within 21 days, while those submitting paper returns may face longer wait times. With recent IRS job cuts raising concerns over processing delays, experts urge taxpayers to file as soon as possible to ensure timely refunds. The IRS's "Where’s My Refund?" tool can help track payments once returns are processed.

2. Trump’s Proposed ‘Gold Card’ Visa Includes a Major Tax Loophole for the Wealthy

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Credit: Tasos Katopodis/Getty Images

President Donald Trump’s proposed $5 million “gold card” residency visa is making waves—not just for its hefty price tag, but for a significant tax loophole that could grant major benefits to ultra-wealthy applicants.

Announced last week, the program offers foreign investors permanent U.S. residency and a path to citizenship in exchange for a multi-million-dollar investment. However, one key provision is drawing scrutiny according to CNBC: gold-card holders would be exempt from U.S. taxes on their overseas income, unlike American citizens and current green card holders who must pay taxes on worldwide earnings.

“This would be a big departure,” said Laura Foote Reiff, an immigration attorney at Greenberg Traurig. “Many wealthy individuals who are invested in U.S. companies or have families here don’t become permanent residents because they don’t want the tax consequences.”

With residency-by-investment programs already popular worldwide, legal experts anticipate strong demand, particularly among Chinese, Indian, and Middle Eastern investors who dominate similar visa programs in Europe and the Caribbean. However, the program could face political and legal challenges, as it creates a dual tax system favoring the global elite.

The gold card would replace the EB-5 visa, which currently grants green cards to those investing at least $900,000 to $1.8 million in qualifying projects. Unlike EB-5, Trump’s proposal does not require investment in specific industries or regions, further enhancing its appeal to high-net-worth individuals.

3. Iowa's Property Tax Mailer Causes Confusion, County Officials Say

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Credit: Michael Rolands/Getty Images

Iowa homeowners are set to receive new property tax mailers in March, but Polk County officials warn the information may be misleading. The mailer, mandated by House File 718, shows an 11.4% tax rate increase for urban residents and 11.75% for rural property owners—figures county leaders say are inaccurate.

According to Polk County Budget Manager Deb Anderson, the actual increase is closer to 1%. The Des Moines Register notes that the discrepancy arises because the state’s calculation assumes property values will rise by 10%, even though the county’s budget does not factor in new assessments. Property reassessments occur every two years, with the most recent one in 2023, meaning valuations should remain unchanged for most homeowners.

"This is a mandated mailing from the Iowa Legislature who knows best and does not expect us to make any changes or any explanation," Supervisor Chair Matt McCoy said, adding that the county is bracing for an influx of concerned calls from residents.

Despite a 10-cent decrease in the aggregate levy rate, Iowa’s residential rollback rate—the percentage of a home’s value that is taxable—is increasing, leading to a modest tax hike of approximately 1.27% for urban homeowners and 1.54% for rural residents.

To counter confusion, Polk County is launching an information campaign, directing residents to the Iowa Department of Revenue’s website for accurate property tax estimates. Officials will also provide in-person assistance for those needing further clarification.

4. IRS EV Tax Credit Rejections Leave Some Buyers Struggling

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Credit: Jackyenjoyphotography/Getty Images

A major shift in the federal EV tax credit process has left some buyers unable to claim their expected $7,500 credit, despite following the rules. The IRS now requires car dealers to report sales through a new online portal within three days of purchase—a change many dealerships failed to implement, leaving buyers like physicist Kristina Meier, who spoke to NPR, ineligible for the credit.

Meier, who purchased a plug-in minivan in September, researched the requirements extensively and received a document labeled “seller report” from her dealer. However, it turned out to be an outdated form no longer valid under the 2024 rules. When she filed her taxes, the IRS rejected her claim.

The issue stems from the Inflation Reduction Act’s overhaul of the EV tax credit, which now allows buyers to apply the credit as an upfront rebate instead of waiting for tax season. Dealers had to enroll in a new reporting system to process both rebates and tax-time claims, but approximately 3,000 dealerships nationwide failed to sign up or used the wrong forms.

Many affected buyers are now scrambling for solutions, from appealing to the IRS to considering legal action against their dealers. Experts warn that the recent IRS layoffs could make it harder to resolve the issue. 

5. Idaho Governor Signs Controversial Parental Choice Tax Credit Into Law

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Credit: WisKay/Getty Images

Idaho Gov. Brad Little has signed the Parental Choice Tax Credit into law, creating a $50 million program that provides families with up to $5,000 per K-12 student to cover education expenses, including private school tuition. Per a KTVB 7 report, families at or below 300% of the federal poverty level will be prioritized in the first year, while students with disabilities may qualify for up to $7,500.

Little hailed the program as a victory for “education freedom,” stating that Idaho is now the first state to offer extensive school choice options from kindergarten through career. He also pointed to the state’s investment of $17 billion into public education since taking office.

However, Democrats and public school leaders strongly opposed the bill, arguing it will divert funding from public schools while providing little oversight on taxpayer dollars. The Idaho Democratic Party criticized the governor, saying, "Vouchers drain critical funding from public schools while providing no accountability."

Superintendent of Public Instruction Debbie Critchfield emphasized the continued importance of public schools, while multiple district leaders voiced concern over potential job losses and funding gaps. Superintendent Joe Steele called the bill “a rejection of public opposition in favor of special interests.”

Despite the controversy, the tax credit program will move forward, with families able to apply for funds next year.

Which headline this week most interests you?

Feature Image Credit: Andrew Harnik/Getty Images

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Rebekah Barton

Rebekah Barton

Rebekah's search engine optimization career began completely by accident as a college student. Over the course of her career so far, she has "grown up" with the SEO industry, from writing content while juggling classes to managing her own teams of writers and overseeing SEO strategy in subsequent roles. She is excited to bring her passion for high-quality content to CountingWorks, Inc.

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