It’s tax-filing time — here’s what to know about deductions, 'no tax on tips,' and more

Core Insights - The 2023 tax season is expected to be significant, with the IRS anticipating around 164 million individual income tax returns, primarily filed online, influenced by the provisions of President Trump's One Big Beautiful Bill Act [1] Tax Refunds and Changes - The Bank of America Institute forecasts a 26% increase in tax refunds due to recent changes, particularly benefiting middle- and higher-income filers, with average refunds potentially rising by $300 to $1,000 compared to previous years, where typical refunds averaged around $3,000 [2] - A survey by Intuit's TurboTax revealed that 40% of Americans are unaware of the new tax changes, and approximately 33% believe they will be worse off, despite the potential for increased refunds or lower balances due [3] Deductions and Benefits - The standard deduction for the 2023 tax season is set at $15,750 for single filers and $31,500 for married couples filing jointly, showing a modest increase from the previous year [6] - Seniors over 65 can claim an additional deduction of up to $6,000, which primarily benefits upper-middle-class seniors with significant wealth [7] - The senior deduction phases out for individuals with modified adjusted gross incomes exceeding $75,000, or $150,000 for couples [8] Specific Provisions for Workers - Certain workers, such as restaurant servers, can temporarily deduct up to $25,000 in qualified tips on their federal returns through 2028, with the benefit phasing out for incomes above $150,000 [9]