FRESNO, CA — The filing season for 2025 tax returns officially began today, January 27, 2026. Financial experts anticipate that many taxpayers could receive record-breaking refunds this year because of recent changes to federal laws.
YourCentralValley.com reports that these expected increases are largely due to the One Big Beautiful Bill Act. Derek Elrod of Bridgewealth Advisory Group said that while the act offers several new tax breaks, they will not benefit everyone.
One change that applies to many filers is an increase to the standard deduction. This is the flat amount the government lets you subtract from your income to lower your taxes.
Benefits for Seniors and Tipped Workers
The new law includes specific rules for filers aged 65 and older. Under these updates, single seniors earning less than $75,000 annually can claim a $6,000 tax deduction. Married seniors with a combined income of less than $150,000 can qualify for a $12,000 deduction.
Tipped workers in the service industry should also see relief. Under the new rules, these employees can deduct up to $25,000 in tips from their taxable income. This applies to single workers earning under $150,000 and married couples earning under $300,000.
Car Loan Deductions and Filing Tips
Under the new law, people earning less than $100,000 can deduct as much as $10,000 in interest paid on car loans for new vehicles purchased in 2025.
Experts say preparation is the best way to handle tax season. Elrod recommends filing as early as possible to get refunds sooner.
To avoid delays, Elrod suggests double-checking paperwork and bank information for errors. He noted that filing an accurate return is the surest way to get your money on time and secure every deduction you deserve.
