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Story summary
- The new federal tax law effective 2025 may increase refunds for many taxpayers.
- The One Big Beautiful Bill adds deductions up to $25,000 for tips and $12,500 for overtime.
- Seniors over 65 can claim an additional $6,000 deduction.
- The state/local tax cap rises from $10,000 to $40,000, benefiting high-value states like California.
- Taxpayers should file by April 15, 2026, with extensions through October 15.
