LaylaBird / iStock.com Last year, many taxpayers were preparing for higher taxes if key provisions of the Tax Cuts and Jobs Act of 2017 were allowed to expire. However, with the passage of the One Big Beautiful Bill Act, many of those cuts were extended. The new law also introduced additional tax changes that taxpayers will need to understand and plan for this year. Read More: 8 Ways Trump’s ‘One Big Beautiful Bill’ Could Offer Tax Relief Find Out: 5 Low-Effort Ways To Make Passive Income (You Can Start ...

Group 1 - The 2026 tax season is underway with significant tax law changes that could impact financial situations, including potential for larger refunds and tax savings [1][2] - The standard deduction has increased for the 2026 filing season, allowing more income to be shielded from tax, which may reduce tax liability and increase refunds [3] - Federal income tax brackets have been indexed for inflation, potentially allowing taxpayers to remain in lower brackets unless their income grows significantly, thus owing less tax [4] Group 2 - The Child Tax Credit for qualifying children will increase, directly lowering tax owed and potentially boosting refunds for eligible taxpayers [4] - Other family-related credits, such as the Earned Income Tax Credit and adoption credit, have higher limits for 2026, which may lead to increased refund amounts based on income and family situation [5] - The deduction cap for state and local taxes (SALT) has been raised significantly, benefiting homeowners in high-tax states who itemize, potentially lowering taxable income and increasing refunds [6] Group 3 - New deductions will be available on 2025 tax returns filed in 2026, including deductions for overtime pay, qualified tips, and certain car loan interest [7] - A special additional deduction for taxpayers aged 65 and older will apply through 2028, providing older filers with an extra means to reduce taxable income and potentially increase refunds [7]

According to Ruth White, former IRS auditor co-founder of White Sands Tax Services, around 90% of taxpayers used the standard deduction in 2024. White expects that to change significantly for 2025 filings, thanks in part to a revision in the tax code. “While preparing 2025 filings, I’ve seen that my middle-class clients earned a minimum of $10,000 to $20,000 more in 2025 but owed less income tax due to this State and Local Tax (SALT) revision in the tax code,” White said. The SALT deduction cap rose fro ...

Core Insights - The One Big Beautiful Bill Act introduces significant tax changes for U.S. homeowners, including a permanent extension of the $750,000 mortgage interest deduction limit and reinstatement of mortgage insurance premium deductions [2][6] - The SALT deduction cap has increased from $10,000 to $40,000, benefiting homeowners in high-tax states [6][8] Tax Deductions - Homeowners may find itemizing deductions more beneficial due to the new tax law, especially if they pay mortgage insurance premiums, which can push them over the threshold for itemizing [3][11] - The mortgage interest deduction applies to the first $750,000 of mortgage debt, meaning only a portion of interest on larger mortgages is deductible [4][10] Mortgage Insurance - Mortgage insurance premiums, previously deductible from 2007 to 2021, are now deductible again, potentially saving homeowners an average of $1,454 annually [6][11] - Homeowners with less than 20% equity typically pay mortgage insurance, which can range from 0.2% to 2% of the mortgage amount annually [5][6] SALT Deduction - The SALT deduction allows homeowners to deduct various non-federal taxes, with the new cap significantly benefiting those in states with high property taxes [7][8] - The deduction phases out for households with incomes over $500,000, primarily benefiting middle- to high-income households [8][9] Financial Considerations - Homeowners with higher mortgage rates, averaging around 6.69% in recent years, may find the mortgage interest deduction particularly valuable [10] - The decision to itemize or take the standard deduction will depend on individual financial circumstances, including mortgage size and other deductions [9][11]

In July, we passed the largest tax cuts in American history, including no tax on tips, no tax on overtime, no tax on Social Security for our great seniors. President Trump made a lot of proclamations about tax policy in his campaign and now throughout his administration. And it's very important for taxpayers to check what the president has said.What the tax breaks do is reduce your taxable income, and perhaps you will pay less tax, but it's not an outright elimination of tax for any of those things. Most of ...

In July, we passed the largest tax cuts in American history, including no tax on tips, no tax on overtime, no tax on social security for our great seniors. >> President Trump made a lot of proclamations about tax policy in his campaign and now throughout his administration. And it's very important for taxpayers to check what the president has said.What the tax breaks do is reduce your taxable income and perhaps you will pay less tax, but it's not an outright elimination of tax for any of those things. >> Mo ...

Should You Take The Standard Deduction Or Itemize On Your 2025 Taxes?Find out here: https://t.co/RYOIbETppg (Photo: Getty Images) https://t.co/96q1X9rqmq ...

Core Insights - The article discusses various strategies for taxpayers to save on their taxes, particularly in light of recent changes under the One Big Beautiful Bill Act (OBBBA) that will affect tax returns filed in 2025 and beyond Group 1: Tax Filing Strategies - Taxpayers need to decide whether to itemize deductions or take the standard deduction, with the standard deduction amount increasing for tax year 2025 due to the OBBBA [2][3] - The OBBBA made the increased standard deduction permanent, which has led to a significant decrease in the number of taxpayers itemizing deductions, dropping from about one-third to less than 10% [4] - An estimated 5 million additional taxpayers are expected to itemize in 2025 as a result of the new law [4] Group 2: Deductions for Seniors - A new deduction for seniors aged 65 and older allows for an additional $6,000 deduction on top of itemized or standard deductions, applicable per person [5][6] - The deduction phases out for individuals earning over $75,000 or married couples filing jointly earning over $150,000 [6] Group 3: State and Local Taxes (SALT) - The OBBBA increased the SALT deduction limit from $10,000 to $40,000, potentially making itemizing more beneficial for many taxpayers [7][9] Group 4: Tips Deduction - Starting in 2025, certain workers can deduct up to $25,000 in tips, with the deduction phasing out for those earning more than $150,000 [10][11] Group 5: Charitable Contributions - Beginning in the 2026 tax year, taxpayers can deduct $1,000 in charitable donations even if they take the standard deduction, a change that may benefit those who donate to charities [13][14] Group 6: Investment Losses - Taxpayers can offset capital gains with investment losses, with a limit of $3,000 for single filers, and losses can be carried forward to future tax years [14][15] Group 7: Health Savings Accounts (HSA) - Contributions to HSAs can reduce taxable income and are made with pre-tax dollars, with specific contribution limits based on individual and family plans [16][17][18] Group 8: Retirement Accounts - Contribution limits for 401(k) plans are set at $23,500 for 2025, increasing to $24,500 for 2026, with additional catch-up contributions available for those aged 50 and older [19][20] - Taxpayers can contribute to traditional IRAs until April 15, 2026, for the 2025 tax year, with limits of $7,000 for 2025 and $7,500 for 2026 [20][21]

Should You Take The Standard Deduction Or Itemize On Your 2025 Taxes?Find out here: https://t.co/RYOIbETppg (Photo: Getty Images) https://t.co/ay4naE1EfM ...

Should You Take The Standard Deduction Or Itemize On Your 2025 Taxes? https://t.co/RYOIbETppg (📸: Getty Images) https://t.co/gQYNTxLruK ...