Tax-filing officially opened in January, and this year, working families across America are sure to see bigger refunds and more money in their pockets. Last summer, the President signed into law the One Big Beautiful Bill which brought about significant changes to our tax code, and now, economists are predicting that Americans will see an average increase of $1,000 to their typical tax refund this year.
Working families will receive significant relief with eligible employees now allowed to exclude up to $25,000 in tips and $12,500 in overtime from their income when doing their taxes. Families will also see an increased child tax credit up to $2,200 per child, and other new tax incentives for child care or adoption services. The new code also supports main street by making the 20% deduction for small-businesses permanent and provides relief for our senior citizens by increasing the standard deduction to $6,000 for those over the age of 65.
This tax-season is shaping up to be one of the most tax-payer friendly seasons our nation has ever seen. If you need more information on changes for this tax-season, please visit IRS.gov.