It’s tax-filing time — bigger refunds, new deductions, 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 between $300 and $1,000 compared to previous years [2] - A survey indicates that 40% of Americans are unaware of the new tax changes, while approximately 33% believe they will be worse off financially [3] Deductions and Benefits - The standard deduction for single filers is set at $15,750 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, benefiting primarily 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]