{"id":78276,"date":"2026-04-16T22:47:46","date_gmt":"2026-04-16T22:47:46","guid":{"rendered":"https:\/\/diyhaven858.wasmer.app\/index.php\/53-million-filers-claimed-trumps-new-tax-cuts-4-key-changes-that-boosted-refunds\/"},"modified":"2026-04-16T22:47:46","modified_gmt":"2026-04-16T22:47:46","slug":"53-million-filers-claimed-trumps-new-tax-cuts-4-key-changes-that-boosted-refunds","status":"publish","type":"post","link":"https:\/\/diyhaven858.wasmer.app\/index.php\/53-million-filers-claimed-trumps-new-tax-cuts-4-key-changes-that-boosted-refunds\/","title":{"rendered":"53 million filers claimed Trump’s new tax cuts. 4 key changes that boosted refunds."},"content":{"rendered":"
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The One Big Beautiful Bill Act (OBBBA), signed into law in July 2025, introduced significant tax changes that were expected to give filers a bigger refund.<\/p>\n
According to the U.S. Department of the Treasury, here\u2019s how the new provisions affected taxpayers this tax season:<\/p>\n
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Over 53 million filers claimed at least one of the new tax cuts.<\/p>\n<\/li>\n
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The average refund is over $3,400, up 11% compared to last year.<\/p>\n<\/li>\n
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6 million filers have claimed \u201cno tax on tips,\u201d with an average deduction of over $7,100.<\/p>\n<\/li>\n
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30 million seniors have claimed the new enhanced deduction, with an average deduction of over $7,500.<\/p>\n<\/li>\n
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25 million filers have claimed \u201cno tax on overtime,\u201d with an average deduction of over $3,100.<\/p>\n<\/li>\n
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Over 1 million taxpayers have claimed the \u201cno tax on car loan interest\u201d on qualifying vehicles, with an average deduction of over $1,800.<\/p>\n<\/li>\n
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Over 105 million filers have claimed the doubled standard deduction.<\/p>\n<\/li>\n<\/ul>\n
Some of these changes \u2014 like the \u201cno tax on overtime and tips\u201d deductions \u2014 don\u2019t change the rates you pay, but they can lower your taxable income and possibly boost your refund.<\/p>\n
Here are the four major tax changes that gave some filers a bigger refund this year.<\/p>\n\n
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For the 2025 tax year, the state and local tax (SALT) deduction quadruples to $40,000. This massive jump from the previous $10,000 limit is a standout change for high-income taxpayers. How much you actually receive from the SALT deduction depends on your income, your state and local tax burden, and any other deductions you claim on your return.<\/p>\n
The SALT deduction includes these write-offs:<\/p>\n
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State and local income taxes: Payroll withholdings or quarterly payments.<\/p>\n<\/li>\n
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Property taxes: Taxes on your primary home, second home, or land.<\/p>\n<\/li>\n
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Local taxes: City income taxes or personal property taxes, like vehicle taxes in some states.<\/p>\n<\/li>\n
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Sales taxes (optional): If your state has no income tax \u2014 or you made a large purchase \u2014 you can deduct sales taxes instead, including those on cars, boats, or major home projects.<\/p>\n<\/li>\n<\/ul>\n
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Homeowners and residents of high-tax states (e.g., California, New York) now get a much larger deduction.<\/p>\n<\/li>\n
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You can claim this deduction only if you itemize: If you take the standard deduction, this tax break is off the table.<\/p>\n<\/li>\n
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To prevent the deduction from becoming a massive windfall for the ultra-wealthy, the deduction starts shrinking once your income goes above $500,000 ($250,500 if married filing separately). For every dollar over that level, the deduction decreases \u2014 but it can never fall below $10,000.<\/p>\n<\/li>\n<\/ul>\n
Read more: <\/em>What to know about the new (higher) SALT deduction \u2014 and how to claim it<\/em><\/p>\n
This new tax break doesn\u2019t totally eliminate taxes on overtime earnings, but if you qualify, it could mean more money in your pocket because it reduces your federal tax liability.<\/p>\n
You can deduct some of the pay that exceeds your regular pay rate. So if you get time-and-a-half, you can deduct the half. Put another way, not all overtime is deductible \u2014 only the pay above your regular rate is deductible, and the amount is capped.<\/p>\n
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The maximum deduction for no tax on overtime is $12,500 or $25,000 for joint filers.<\/p>\n<\/li>\n
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The deduction phases out for taxpayers with modified adjusted gross income over $150,000 ($300,000 for joint filers)<\/p>\n<\/li>\n
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You\u2019re eligible whether you itemize or take the standard deduction.<\/p>\n<\/li>\n<\/ul>\n
Learn more: <\/em>How to claim the new ‘no tax on overtime’ deduction<\/em><\/p>\n
For millions of service workers, the promise of \u201cno tax on tips\u201d sounds like a straight boost to your paycheck. But the reality is more nuanced: You can deduct a portion of the money you earn in tips, reducing the income the IRS uses to calculate your taxes and eligibility for certain tax breaks.<\/p>\n
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There\u2019s a cap: You can deduct up to $25,000 a year in qualified tips.<\/p>\n<\/li>\n
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You can claim it whether you itemize or take the standard deduction.<\/p>\n<\/li>\n
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What counts: The IRS defines “qualified tips” as voluntary, non-negotiated payments determined solely by the customer. In other words, if the customer didn\u2019t freely choose to tip, the IRS doesn\u2019t treat it as deductible. That means:<\/p>\n
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You can deduct these tips: Cash tips, credit card tips, and pooled tips.<\/p>\n<\/li>\n
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But you can\u2019t deduct these tips: Automatic service charges and any \u201cgratuities\u201d that aren\u2019t truly optional.<\/p>\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n
Learn more: <\/em>Who\u2019s eligible for ‘no tax on tips,’ and how do you claim it?<\/em><\/p>\n
If you financed a new vehicle recently, you may be eligible for a tax break when you file your return \u2014 up to $10,000 of car loan interest is now tax-deductible in certain situations.<\/p>\n
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You can claim the $10,000 deduction even if you take the standard deduction (you don\u2019t have to itemize).<\/p>\n<\/li>\n
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Your taxable income can\u2019t exceed $100,000 if you\u2019re single or $200,000 if you\u2019re married filing a joint return.<\/p>\n<\/li>\n
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You won\u2019t be able to deduct car loan interest at all if your income is above $150,000 (single filers) or $250,000 (joint filers).<\/p>\n<\/li>\n
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The vehicle must be new and assembled domestically (verified by VIN\/assembly code). Other requirements also apply.<\/p>\n<\/li>\n<\/ul>\n
Read more: <\/em>How to qualify for the new car loan interest deduction<\/em><\/p>\n
Older, middle-income Americans get a $6,000 boost to their standard deduction this year. The catch: The poorest seniors already don\u2019t pay taxes on their Social Security benefits, so this deduction won\u2019t help them.<\/p>\n
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The deduction phases out for single filers who earn over $75,000 ($150,000 for those married filing jointly).<\/p>\n<\/li>\n
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You\u2019re eligible whether you itemize or take the standard deduction.<\/p>\n<\/li>\n<\/ul><\/div>\n
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