Biggest Changes to Your 2025 Taxes

New deductions and credits could mean a lower tax bill and higher refund for filers.

Published on Feb. 10, 2026

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The Trump administration made several changes under the 'Big Beautiful Bill' that could result in a lower tax bill and higher refund for filers when filing their 2025 taxes. Key changes include a higher standard deduction, increased state and local tax (SALT) deduction cap, and larger tax credit for children.

Why it matters

These tax changes could have a significant financial impact on many Americans, potentially putting more money back in their pockets through larger refunds or lower tax bills. This is especially important given the economic challenges many have faced in recent years.

The details

The standard deduction for single filers increased to $15,750, up from $15,000. For married couples filing jointly, it increased to $31,500, up from $30,000. The SALT deduction cap jumped to $40,000 from $10,000 for married couples filing jointly, allowing them to deduct more of their state and local income or sales taxes. The child tax credit also increased to $2,200 per child under 17. Eligible workers can deduct up to $25,000 in tipped income, and those in certain professions like firefighting and law enforcement can deduct up to $12,500 in overtime pay.

  • The deadline to file 2025 taxes is April 15, 2026.
  • The average tax refund in the previous year was $3,116, according to the IRS.

The players

Lisa Greene-Lewis

A CPA and tax expert at TurboTax who provided insights on the biggest tax changes for 2025.

Trump administration

Made the tax changes under the 'Big Beautiful Bill' that are impacting 2025 tax filings.

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What they’re saying

“In those high property-tax and state-tax states, they'll be able to claim more of those deductions.”

— Lisa Greene-Lewis, CPA and tax expert at TurboTax

“If you're a service worker like a firefighter or police officer, you can deduct up to $12,500 in overtime.”

— Lisa Greene-Lewis, CPA and tax expert at TurboTax

What’s next

The deadline to file 2025 taxes is April 15, 2026, so taxpayers should begin gathering their documents and preparing their returns in the coming months.

The takeaway

These tax changes could put more money back in the pockets of many Americans through larger refunds or lower tax bills, which could be especially helpful given the economic challenges of recent years. Taxpayers should familiarize themselves with the new deductions and credits to maximize their savings when filing their 2025 returns.