Haven't filed your taxes yet? Here's how to get a bigger refund under new law
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WASHINGTON - Haven't filed your taxes yet?
According to the latest data from the Internal Revenue Service (IRS), the agency has received approximately 22.4 million returns so far, meaning that tens of millions of Americans still have to file.
Many Americans are expected to receive a larger refund this year than in previous years due to changes made to tax policy under the One Big Beautiful Bill Act (OBBB), which President Donald Trump signed into law last year. Recent data from the IRS shows that the average tax refund is up 10.2% so far this filing year—clocking in at $3,804 per filer.
President Donald Trump bangs a gavel after signing the "One Big Beautiful Bill" Act into law during an Independence Day military family picnic on the South Lawn of the White House on July 4, 2025, in Washington, D.C. (Photo by Alex Brandon - Pool/Get
If you're still pulling together your tax documents for this year, here's what you can do in order to possibly get a larger refund.
Claim the standard deduction
What you can do:
When filing taxes, the large majority of Americans claim the "standard deduction" on their income—this is the number that reduces a taxpayer's taxable income. According to the Tax Policy Center, this figure "ensures that only households with income above certain thresholds will owe any tax."
The OBBB increased the standard deduction for single taxpayers by $750 and for married filers by $1,500. Now, those figures sit at $15,750 for single filers and $31,500 for married people, according to the Bipartisan Policy Center.
In short, when a standard deduction increases, the amount of your income that can be taxed goes down, resulting in more money in your pocket. All you have to do is make sure you claim the standard deduction—which you've probably already been doing.
Claim the increased Child Tax Credit (CTC)
Similarly, the OBBB increased the maximum Child Tax Credit (CTC) to $2,200 per eligible child, and that figure will continue to be adjusted based on inflation going forward.
Local residents, Cara Baldari and her nine-month-old daughter Evie (L) and Sarah Orrin-Vipond and her eight-month-old son Otto (R), join a rally in front of the U.S. Capitol on Dec. 13, 2021, in Washington, D.C. (Photo by Alex Wong/Getty Images)
The CTC is meant to offset the costs of raising children in the United States, according to the Bipartisan Policy Center. In order to take advantage of this credit, taxpayers should ensure they're filing the correct forms and list all of their children and their social security numbers when filing.
Like the standard deduction, benefiting from this tax policy change is simply a matter of filling out the proper paperwork. Ask your tax advisor for these forms at your appointment or download them directly from the IRS' website if you're filing on your own.
Claim new deductions on tips
The OBBB also implemented a "no tax on tips" tax break, which again, reduces the amount of income considered taxable per filer.
As noted by the Bipartisan Policy Center, this deduction "can only be used for tips earned in an occupation that ‘customarily and regularly received tips’ before 2025." For a list of those occupations, click here.
To claim this deduction, make sure that your tip income is documented properly and simply claim it on Schedule 1 of Form 1040 when filing.
Employees who receive $20 or more in tips per month typically report that income to their employers monthly on Form 4070, according to the IRS. At the end of the year, your employer will include these tips on your W-2, with any pooled or allocated tips shown in Box 8.
A dollar goes into the jar at the Water Street Pizzeria on Tuesday, May 20, 2025, in Henderson, Nevada. (L.E. Baskow/Las Vegas Review-Journal/Tribune News Service via Getty Images)
If you didn't report all your tips throughout the year, you're still eligible to claim this tax break, per the IRS. You'll just have to add the unreported tips when filing your return and first pay the Social Security and Medicare taxes on them using Form 4137.
Self-employed workers or independent contractors report all tip income on Schedule C, paying both income and self-employment taxes.
Claim new deductions on overtime pay
American taxpayers can also now claim up to $12,500 of overtime pay per year, or $25,000 for married couples filing jointly, with the deduction phasing out above $150,000 annually for single filers or $300,000 for joint filers, according to the IRS.
In order to qualify for this deduction, filers must have qualified overtime pay—this is the portion of your earnings that comes from hours worked beyond your regular schedule at a higher overtime rate, typically time-and-a-half.
You should include the overtime deduction on your federal tax return; you may need to calculate the overtime portion yourself if it isn't already separately shown on your W-2.
Claim new auto loan interest deduction
Taxpayers can also deduct the interest paid on qualifying vehicles.
According to the IRS, filers can deduct up to $10,000 per year in interest paid on loans used to buy new cars that were purchased after Dec, 31. 2024 and assembled in the United States. To qualify, vehicles must be used for personal use and the loan must be secured by the vehicle, meaning the car acts as collateral and can be repossessed by the lender if payments are missed.
A detailed view shows the lease price for a new vehicle for sale on a Ford dealership lot in Hawthorne, California, on Feb. 18, 2026. (Photo by Michael Yanow/NurPhoto via Getty Images)
To claim this deduction, gather your auto loan monthly statements which show the amount of interest paid, your loan agreement and proof of purchase, and additionally make note of your vehicle's identification number (VIN); the IRS may need this to verify your purchase and therefore, eligibility. Then, simply claim the deduction on your return.
Claim new senior tax deduction
Under the OBBB, taxpayers 65 or older can claim an additional $6,000 deduction when filing their taxes through 2028.
To qualify, you must be 65 or older by the end of the tax year and include your social security number on your return, according to the IRS. Make sure to claim it when filing your Form 1040 for 2025 and later years while it’s in effect.
This deduction begins to phase out above certain income levels—that's $75,000 annually for single filers and $150,000 for married couples filing jointly.
Maximize your SALT deduction
For those who itemize their deductions when filing, the OBBB greatly increased the limit on state and local tax (SALT) deductions, as well. The limit is now $40,000, up from $10,000 in deductions per year, according to the IRS.
This deduction also begins to phase out for people with incomes over $500,000 annually.
In an aerial view, two-story single family homes line the streets of a neighborhood on January 13, 2026, in Thousand Oaks, California. (Photo by Kevin Carter/Getty Images)
This especially benefits those living in high-tax states, who can now deduct a much larger portion of what they pay in state income tax and property tax, for example.
In order to take advantage of this change, the IRS says you should itemize your deductions on Schedule A of Form 1040 instead of taking the standard deduction—only itemizers can claim SALT. Make sure you also have records of your state and local income taxes, property taxes and other deductible local taxes.
What's next:
The 2026 federal tax filing season ends on April 15.
The Source: Information above was sourced from the Internal Revenue Service, the Bipartisan Policy Center, the Tax Policy Center, The White House and Experian.