The One Big, Beautiful Bill Act (OBBBA) was signed into law on Jul. 4, 2025. It increased standard tax deductions, excluded taxes on tips and introduced additional deductions for seniors, among many other provisions. With tax season coming up fast, many people are wondering exactly how much OBBBA will end up saving them. SmartAsset calculated the approximate amount residents in each state might receive thanks to OBBBA. Are you in one of the states that will benefit most? Read on to find out. California ...

Core Insights - The 2025 tax year is approaching its end, and proactive planning can help reduce tax liabilities and enhance savings [1] - Taxpayers are expected to pay more upfront in 2025 but receive larger refunds in 2026, with an estimated average refund of $3,743, reflecting a 17% increase from 2025 [2] Tax-Saving Strategies - Contributions to retirement plans and college savings accounts must be made by December 31, with a contribution limit of $23,500 for 401(k) or 403(b) plans in 2025, plus an additional $7,500 for those aged 50 or older [4][5] - For individuals aged 73 or older, December 31 is the deadline for taking required minimum distributions (RMDs) to avoid penalties [6] Investment Strategies - Tax-loss harvesting allows investors to sell underperforming assets to offset capital gains, with up to $3,000 of remaining losses applicable to ordinary income each year, and any excess losses can be carried forward [7] - The wash-sale rule, which prevents repurchasing substantially identical investments within 30 days of sale, currently does not apply to cryptocurrencies [8] Itemization Considerations - Less than 10% of taxpayers itemize deductions, but it may be beneficial if deductions exceed the standard deduction of $15,750 for single filers and $31,500 for married couples in 2025 [9]

Mortgage rates may have come down from their peak seen a few years ago, but for many borrowers, they’re still far from ideal. Buying mortgage points can help lower your monthly costs. With mortgage points, you’ll pay an up-front fee in exchange for a lower interest rate — and monthly payment — for the life of your mortgage loan. Depending on how you file your tax returns, points may also offer a potential tax deduction. Here’s what you need to know about mortgage discount points and your taxes. Dig de ...