President Donald Trump‘s One Big Beautiful Bill Act will have some significant effects on this year’s tax filing season, with provisions such as “no tax on tips” and “no tax on overtime” allowing people to claim more deductions.
Average tax refunds have increased by over 11% this year. With Tax Day on Wednesday, here are some points people should know about how the so-called “working families tax cuts” will affect their 2025 tax filing season.
Working people can claim deductions of up to $25,000 on cash tips. This applies to single taxpayers with a modified adjusted gross income of up to $150,000 and to joint filers with a modified adjusted gross income of up to $300,000, reduced by $100 per every $1,000 of income above that cap. It applies to any tips received on or before Dec. 31, 2024.
People can also claim deductions of up to $12,500 on overtime for a
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