Core Insights - The tax season is approaching, and taxpayers may see an average refund increase of 10.2% compared to last year, amounting to approximately $3,804 due to changes under the One Big, Beautiful Bill Act (OBBBA) and outdated withholding tables [2] Legislative Changes - The OBBBA is part of a series of laws passed through budget reconciliation, allowing tax and spending changes to be approved with a simple Senate majority, similar to previous acts like the Tax Cuts and Jobs Act of 2017 and the Inflation Reduction Act of 2022 [3] - The use of budget reconciliation for tax changes has become a common practice among administrations, leading to potential confusion regarding the permanence of tax provisions [4] New Tax Deductions - The OBBBA introduces new deductions, including up to $25,000 for individual tips and up to $15,000 for overtime pay, which can increase to $25,000 for couples filing jointly [5] - Individuals aged 65 and older can claim an additional deduction of $6,000 on top of their standard senior citizen deduction [5] - The State and Local Tax deduction cap has been raised from $10,000 to $40,000, providing more tax relief [5]