You’ve likely received your tax documents by now. That means the clock is ticking to file your taxes.
The Trump Administration made a lot of changes under the “Big Beautiful Bill” that could mean a lower tax bill and a higher refund for filers.
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Although you have until April to file your 2025 taxes, some big changes you could see this year mean you should probably start sooner than later getting everything together.
“I would just get it done as soon as possible,” said Lisa Greene-Lewis, a CPA and tax expert with TurboTax.
Greene-Lewis said filers need to know some important information this year.
First, a higher standard deduction means more of your money is shielded from federal taxes. For single filers it increases to $15,750 up from $15,000. For married couples filing jointly it increases to $31,500, up from $30,000.
Second, a higher state and local tax deduction commonly known as SALT. It allows you to deduct your state and local income taxes or your state and local general sales taxes. That cap jumps to $40,000 from $10,000 for married couples filing together.
You might also be able to deduct your property taxes as long as your income or sales taxes don’t put you over the $40,000 cap.
“In those high property tax states and state tax states, they’ll be able to claim more of those deductions,” Greene-Lewis said.
Third, a larger tax credit for children means parents can receive $2,200 per child. They must be under 17 at the end of the tax year, among other requirements.
If you work in an industry where you get tips or overtime, there are some changes you need to know about, too.
Eligible workers can deduct up to $25,000 in tipped income.
“If you’re a service worker like a firefighter, police officer, you can deduct up to $12,500 in overtime,” Greene-Lewis said.
Last year, the average refund was $3,116, according to the IRS. With new these changes, some can expect an even higher refund.
“We are expecting filers to see up to $1,000 increase in their refund or a lower balance due,” Greene-Lewis said.
The deadline to file your taxes is April 15.