With tax season upon us, some significant changes could have a big impact on your financial bottom line this year. One major shift is the elimination of federal taxes on tips, which could allow those in the service industry to deduct up to $25,000 from their reported income. This sounds like a game changer for many, right? But that’s not all; there’s a new deduction for overtime that could save you up to $12,500 as well.
Seniors, gather ‘round! If you’re 65 years or older and file a tax return, you might just snag an additional $6,000 deduction—provided you meet the income limits. With the Child Tax Credit also increasing to $2,200 per child, it’s looking less gloomy this tax season for families trying to keep their heads above water financially.
If you financed a new vehicle last year, don’t forget that there’s a potential deduction on interest paid, capped at $10,000. Just remember, the vehicle must’ve been assembled in America, so have that VIN ready! Of course, if you owe the IRS, make sure to file your taxes by April 15—pay what you can and explore payment options; it could save you a financial headache down the line. This tax season may not be perfect, but it sure is a step in the right direction!
About the Author
Andrew Johnson
Andrew Johnson is a contributor to LocalBeat, covering local news and community stories.
