Trump Tax Changes: Experts Issue Advice to 2026 Filers
Summary
The U.S. government has introduced new federal tax changes that affect how Americans file their taxes for income earned in 2025. These changes include new deductions for workers who earn tips or overtime pay, as well as for taxpayers aged 65 and older. Understanding these changes is important for taxpayers to maximize their savings and avoid filing mistakes.Key Facts
- The new tax changes were introduced through legislation called the One Big Beautiful Bill.
- Tax season began on Monday for income earned in 2025, with filings due by April 15.
- There are new deductions for workers who make tips or earn overtime, and an additional deduction for seniors aged 65 and older.
- Service workers earning under $150,000 can deduct up to $25,000 in tip income.
- Overtime deductions apply only to overtime mandated by federal law and not by state law.
- Seniors can claim an extra $6,000 deduction, contingent on income limits.
- These deductions have caps: $25,000 for tip income and $12,500 (for singles) or $25,000 (for joint filers) for overtime.
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