Americans filing their taxes this year will see several significant changes \u2014 including a larger standard deduction, new tax breaks on tips and overtime pay, and an expanded deduction for seniors. <\/p>\n
The updates come under the One Big Beautiful Bill Act and could affect millions of taxpayers.<\/p>\n
Nearly 90% of tax filers claim the standard deduction. This year, that deduction increases by nearly 8%.<\/p>\n
Jay Foley, president of MaxGuard Wealth, said the new thresholds are substantially higher.<\/p>\n
\u201cThe standard deduction if you’re married, filing jointly, is $31,500,\u201d Foley said. \u201cThat’s if you’re married. And if you’re single, it is $15,750.\u201d<\/p>\n
In addition to the higher standard deduction, the new law eliminates taxes on certain tips \u2014 as long as the gratuity is added to a credit card and not paid in cash.<\/p>\n
\u201cSo you will not pay taxes on $12,500 of these if you’re single,\u201d Foley said. \u201cAnd if you are married, it is up to $25,000.\u201d<\/p>\n
The law also creates a new deduction for overtime pay. Income earned from overtime work can now be deducted up to $12,500 for single filers and up to $25,000 for married couples filing jointly.<\/p>\n
Seniors are also eligible for a new bonus deduction.<\/p>\n
\u201cIf you’re 65 or older, you are entitled to a bonus deduction of $6,000,\u201d Foley said. \u201cAnd it doesn’t matter if you take the standard deduction or you itemize, you’re still entitled to that $6,000. If you’re married, it is $12,000.\u201d<\/p>\n
Homeowners may benefit as well. The cap on the state and local tax deduction, known as the SALT limit, has increased from $10,000 to $40,000. That means property taxes and certain other state and local taxes \u2014 along with mortgage interest \u2014 may be deductible at higher levels than in previous years.<\/p>\n
Not everyone, however, will qualify for the new breaks.<\/p>\n
Shahnaz Rashid of New York said she was hoping for a refund this year but learned the changes would not apply to her.<\/p>\n
\u201cI already did my new taxes and I asked about the new deductions, and they said it doesn\u2019t apply to you,\u201d Rashid said.<\/p>\n
The deadline to file 2025 federal income taxes is April 15. Tax experts recommend reviewing the new deductions carefully or consulting a financial professional to determine eligibility.<\/p>\n
This story was originally reported for broadcast by NBC New York. AI tools helped convert the story to a digital article, and an NBC New York journalist edited the article for publication.<\/p>\n","protected":false},"excerpt":{"rendered":"Americans filing their taxes this year will see several significant changes \u2014 including a larger standard deduction, new…\n","protected":false},"author":2,"featured_media":145969,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[36817,9,11,10,2780],"class_list":["post-145968","post","type-post","status-publish","format-standard","has-post-thumbnail","category-new-york","tag-better-get-baquero","tag-new-york","tag-new-york-headlines","tag-new-york-news","tag-taxes"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts\/145968","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/comments?post=145968"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts\/145968\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/media\/145969"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/media?parent=145968"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/categories?post=145968"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/tags?post=145968"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}