The 2025 tax changes boost refunds, especially for higher earners, with new deductions for tips and overtime.

The 2025 tax season introduces significant changes under the Trump administration’s “Big Beautiful Bill,” including higher standard deductions, an expanded SALT deduction cap, and an increased child tax credit. Workers in tip-based or overtime-heavy jobs can now deduct up to $25,000 in tips and $12,500 in overtime pay. These changes may boost average refunds by up to $1,000, though impacts vary widely: higher-income households could see refunds rise by thousands, while lower-income filers may gain only about $18 on average due to ongoing economic disparities.