Big beautiful refund? 5 tax code changes that may put more money in your pocket
Quick Insights
The Bottom Line
President Trump's "One Big Beautiful Bill Act" retroactively changed tax codes for 2025.
How This Affects You
You may receive a larger tax refund for 2025 due to new deductions for state/local taxes, tip income, overtime, and U.S.-made vehicle loan interest.
AI Summary
President Donald Trump's "One Big Beautiful Bill Act," signed into law on July 4, 2025, has introduced several retroactive tax code changes for the 2025 tax year. These provisions, which include an increased state and local tax deduction, new deductions for tip income, overtime pay, and U.S.-made vehicle loan interest, are expected to result in larger tax refunds for many Americans. The act also features a new deduction for seniors, with most changes set to expire by 2028 or 2030. These adjustments prevent the expiration of 2017 tax cuts, which would have increased the average individual tax bill by an estimated $2,955 starting in 2026. Taxpayers are advised to consult a qualified professional for personalized tax guidance.
What's Being Done
President Trump signed the "One Big Beautiful Bill Act," introducing retroactive tax code changes for 2025.
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