Labor & Taxes
November bonus brings money forward for taxpayers, but reduces 2027 IRS refunds by 70%
New tax withholding adjustments effective in November are designed to increase monthly take-home pay, but will lead to an estimated 70% reduction in IRS tax refunds in 2027. For a single taxpayer earning 1500 euros gross monthly, the estimated refund drops from 247 euros to 79 euros, as the money is distributed in advance throughout the year.
Why it matters
If you rely on your annual IRS tax refund to cover large expenses or holidays, expect a significantly smaller payout in 2027, or potentially a balance to pay, as your monthly salary will be slightly higher throughout the year instead.CNN PortugalRead original ↗
