Confusion over new tax deductions could cost taxpayers thousands, says expert. How to max out your refund

Core Insights - The current tax season presents significant financial opportunities for American taxpayers, with the average federal tax refund exceeding $3,800, but confusion over new tax rules may lead to unclaimed benefits [2][3] Group 1: Tax Refunds and Financial Impact - The average federal tax refund has reached over $3,800, providing a substantial financial boost for households facing rising costs [2] - Tax professionals warn that new rules and changes in deductions and credits could result in taxpayers missing out on hundreds or thousands of dollars [2][3] Group 2: Changes in Tax Deductions - This tax season features numerous new or expanded deductions, particularly benefiting workers and older Americans, as part of the One Big Beautiful Bill Act [4] - Specific deductions include up to $25,000 for qualifying tips for tipped workers, up to $12,500 for overtime pay, an additional $6,000 for taxpayers aged 65 and older, and up to $10,000 for interest on qualifying car loans [5] Group 3: Complexity of Tax Code - The tax code is continuously evolving, with annual adjustments to brackets, credits, and deductions to reflect inflation and policy changes, creating a complex environment for taxpayers [6] - There is widespread misunderstanding regarding new deductions, including those for tips, overtime, car interest, and senior citizens [7]