Boost Your Refund with New Tax Laws: Expert Breaks Down Key Changes
As tax season approaches, individuals and businesses can expect a significant boost in their refunds thanks to new tax laws. With the One Big Beautiful Bill Act passed in July 2025, taxpayers are now eligible for various deductions and credits that can greatly reduce their tax bills. In this article, we'll delve into the key changes and provide expert advice on how to maximize benefits.New Tax Laws Bring Big Refund Bonuses
According to Bria Harris, a certified tax expert with 10 years of industry experience, many Americans are expected to receive larger federal refunds this year. Analysts estimate that the average refund could be about $1,000 higher, with total refunds nationwide potentially reaching tens of billions of dollars more than last year. The boost is largely due to enhancements to the child tax credit and earned income tax credit.
Eligibility Depends on Income, Filing Status, and More
However, not everyone will qualify for the increase. Harris emphasizes that eligibility depends on factors such as income, filing status, SSN requirements, and whether each taxpayer meets the rules for the credits. To maximize benefits, she suggests reviewing eligibility for expanded credits, adjusting withholding early, and filing electronically with direct deposit for faster refunds.
Standard Deduction Amounts Have Increased
When filing returns this year, individuals should confirm they are using the updated standard deduction amounts for 2025 returns. These include $15,750 for singles, $31,500 for married filing jointly, and $23,625 for head of household. Harris notes that these deductions directly lower taxable income and can largely boost tax savings or refunds.
Seniors and the Blind May Qualify for Additional Deductions
Harris explains that seniors and those who are blind may qualify for additional deductions, including the new $6,000 senior bonus deduction. This can further trim their tax bill. When filing with a professional tax office, like Impress Tax Service, and answering all questions accurately, the tax software will automatically apply the credits and deductions a taxpayer qualifies for.
Tip and Overtime Deductions: Who Qualifies?
Harris clarifies that not all occupations will benefit equally from the 'no tax on tips' and 'no tax on overtime' provisions. The tip deduction mainly applies to workers in jobs that customarily and regularly receive voluntary tips, such as servers, bartenders, hotel staff, and more. On the other hand, the overtime deduction is broader and based on whether an employee receives qualified overtime pay under federal wage rules.
As tax season approaches, it's essential to understand the new tax laws and how they can impact your refund. By leveraging deductions and credits, individuals and businesses can potentially get larger refunds, trim their tax bills, and greatly cut costs. Don't miss out on these opportunities – review your eligibility, adjust your withholding, and file electronically with direct deposit for faster refunds.
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