Many of you have your W-2s and are ready to do your taxes. But before you file, there's one thing to remember: there are big changes this year.
Many of you have your W-2s and are ready to do your taxes. But before you file, there's one thing to remember: there are big changes this year.President Trump's "One Big Beautiful Bill Act" includes tax breaks for people who earn tips, overtime and new deductions for seniors.
"On average, the expectation is that refunds are going to increase this year for a lot of people, though that's not the case for everyone," said Cady Stanton, a congressional reporter with Tax Notes. One of the big changes involves state and local tax deductions. SALT deductions quadruple from $10,000 to $40,000. "That deduction basically allows you to subtract some state and local tax payments from your federal taxable income. The goal there is to prevent you from being double taxed or paying federal taxes on money that you've already paid state or local taxes on." There is also a new deduction for seniors. Anyone over 65 now qualifies for an extra $6,000 deduction.And if you earn money from tips, you deduct, too - up to $25,000. "It's really important to pay attention here that there are a lot of details on those provisions that play a big role. No tax on tips only applies to tipped wages, and it only applies to those who work in an occupation that the Treasury considers customarily and regularly receiving tips. Because there are so many new changes, some taxpayers may want to consider expert help this year to sort it all out.
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