How Many Deductions?

The passage of the One, Big, Beautiful Bill has certainly changed some things up here this tax season. Anytime there are new tax rules, there is a little bit of trepidation as we wait to see how it will all play out when it comes time to handle actual forms and returns. The recent bill’s passage, though, seems to have captured the public’s fancy a little more than usual.

I imagine that some of this has to do with the headlines of tips and overtime not being subject to taxes. This covers enough people that there are a significant number expecting to see a little bigger tax return this year. And for many – this will even come true.

At the same time, this seems to have given rise to a general idea that there are more deductions out there to be claimed and thus more people thinking they may be able to itemize deductions and not just take the standard one.

Granted, this is surely always possible. So give yourself time to get those receipts and forms together to build that deduction number as high as possible. But also remember, the standard deduction starts high, so it can be difficult for many people to eclipse:

• $15,750 for single or married filing separately
• $31,500 for married couples filing jointly or qualifying surviving spouse
• $23,625 for head of household

But if you can claim more than that, you definitely should. So move quickly if you think you are in this situation, the more you can document, the more you can potentially get back in those bigger refunds that many are envisioning.

Warmly,

Josh Bousquet
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