No tax on tips, up to $25,000
Since 2025, tipped workers can deduct up to $25,000 a year in tips from federal income tax, and Treasury says more than 7.5 million filers claimed it in the first season.
Taxes & Paychecks
Tax changes that leave more of your own money in your own pocket.
6 wins
No tax on overtime
Hourly workers can deduct up to $12,500 a year of overtime premium pay, or $25,000 for couples, and Treasury says more than 29 million filers claimed it in the first season.
An extra $6,000 deduction for seniors
Since 2025, Americans 65 and older get an extra $6,000 federal deduction each, or $12,000 per couple, and Treasury says more than 35 million seniors claimed it in the first season.
The refund that came back bigger
By May 8, 2026, the IRS had refunded $324.8 billion, up 18% from a year earlier, and the average refund rose 11.5% to $3,276.
The tax hike that never happened
The 2025 tax law made the 2017 Trump tax rates and the larger standard deduction permanent, heading off a 2026 increase that would have hit about 62% of filers.
Write off your car-loan interest
Buyers of new American-assembled vehicles can deduct up to $10,000 a year in auto-loan interest through 2028, subject to income limits.